that another contractor working with housing associations and local government to deliver new homes is about to enter a formal insolvency process.
Based in the South East, Westridge Construction Ltd have constructed homes for a number of housing providers. It appears to be in financial difficulty despite turnover during the last reporting period of £64m and turning a profit in recent reporting periods.
Contractor insolvency exposes housing associations to a number of risks, whatever stage the project is in - including after practical completion and the expiry of any defects liability period.
While housing providers can take some steps to insulate themselves from the risk of contractor insolvency before letting a construction contract, it is a fact of the difficult economic climate, and the number of insolvencies shows no sign of slowing down.