The CLC greatly regrets last Friday’s news that Interserve will be entering a pre-pack administration. It is our understanding that in administration, the company will be able to fulfil its contracts, there will be no impact on employees, and it will be able to implement its planned restructuring.
However, that another major contractor has gone into administration, can only increase negative perceptions of the industry. Our hope is that, once the restructure is complete, a more soundly based business will be able to provide greater certainty to clients, supply chain and employees.
The difficulties that Interserve has faced on some projects underlines the need to reform the business model of the industry, to increase the profitability of projects through enhanced productivity and the need for better procurement and payment practices throughout the construction supply chain.
The CLC will monitor the situation closely and will continue working for improvements in these key areas and others through our promotion of the Construction Sector Deal.