Typical situations
- The order book looks solid, but cash is tied up in applications, retentions or disputed valuations.
- A main contractor delay or insolvency is putting pressure on subcontractors still expected to deliver.
- Overheads and plant costs were set for a busier programme than the company now has.
- HMRC, suppliers or funders are asking questions while live jobs still need to be finished.
Construction turnaround starts with the contracts
A generic turnaround review can miss the economics of contracting. Certified work, pay-less notices, retention releases, bonds and the status of each live job all affect whether the business can be stabilised.
The first task is to understand which contracts still generate cash, which are consuming it, and whether the company can complete work without worsening the position for creditors.
Cash, tax and the supply chain sit together
Construction distress rarely arrives as a single issue. Late payment and retentions, CIS and HMRC arrears and supplier or petition pressure often appear at the same time.
A credible plan has to cover all three, plus the personal exposure that often sits around plant and facilities. That is why this page sits alongside, rather than replaces, the general business turnaround page.
When a formal process may still be needed
If the core contracting operation remains viable but historic debt cannot be carried, a construction CVA or another formal option may need to be compared. If the work itself no longer supports the overhead, the conversation shifts toward managed closure.
Turnwell helps directors sequence that work: stabilise the facts, protect what still has value, and only then decide whether an informal turnaround is enough.
Common questions
Is construction turnaround different from general turnaround?
Yes in the detail. The commercial questions are the same, but payment applications, retentions, CIS and main-contractor risk change both the diagnosis and the plan. The general turnaround page covers the broader UK company framework.
Can a busy order book still mean the business is in trouble?
Yes. Construction companies can look full of work while cash is delayed, retentions are building and tax or supplier arrears are rising. The order book is only useful if it converts into fundable cash.
Related services
Construction cash flow
Deal with retentions, delayed payments, unpaid certified work and working-capital pressure across contracting businesses.
Construction HMRC debt
Address CIS, VAT, PAYE and Time to Pay issues that are specific to contractors and subcontractors.
Construction creditor pressure
Respond to supplier action, main contractor insolvency and enforcement without losing sight of live contracts.
Construction CVAs
Assess whether a CVA can work for a contractor once bonds, retentions and employer termination clauses are taken into account.
Related insights
Construction cash flow, late payment and retentions
How late certificates, pay-less notices and retentions create cash pressure in construction businesses, and what directors should examine first.
Director duties when a company is in financial difficulty
A clear explanation of how UK director duties shift as a company approaches insolvency, including creditor interests, continued trading and record-keeping.
