Bad news for the suppliers and subcontractors owed money by NRI Civils Ltd.
Our Construction Finance clients receive an advance of typically between 50%-65% once they have raised an application or received a payment certificate. We cover that advance with bad debt protection, so in the event of your client failing before settling the invoice, at least you have the advance insured.
Even if you don’t need the working capital, it’s still worth looking into a stand alone bad debt protection policy. Conatct us if you would like some provisional quotes for Construction Finance and/or Bad Debt Protection.
Full story from Construction Enquirer below:
Corby based groundworks specialist NRI Civils Ltd owed £4.8m to suppliers and subcontractors when it went into administration.
The scale of the firm’s debts were revealed in a Companies House update after the firm went under last November.
NRI had worked at a Barratt housing job in Cambridgeshire where 83 new homes are being demolished because of faulty foundations.
Problems were found last year with new homes under construction at the Darwin Green site where Barratt David Wilson Homes Cambridgeshire is building a new community of nearly 1,600 homes.
The report said NRI had become subject to a dispute with a major house builder that left “a large hole in its cash flow”.
NRI had an adjudication hearing go in its favour but the ruling was disputed and the firm was placed into administration.
NRI had been in business since 2012 reaching a turnover of £21m in 2021 generating a pre-tax profit of £826,000