Avoiding Supplier Insolvency on a £3M Project

A regional construction firm, a Birmingham-based construction firm, was mid-way through a £3M apartment development. A key steel-fabrication supplier began requesting shorter payment terms and cash advances, which raised red flags with the commercial team.
 

Using AlertFlag

• Added all subcontractors and critical suppliers into an AlertFlag monitoring group.
• Shortly after, an alert flagged a newly registered CCJ against the steel supplier.
• Further checks showed a director departure and a weaker overall credit position.

Outcome

A regional construction firm immediately switched to a pre-approved backup supplier. By acting early, they avoided a likely collapse of the original supplier, which would have led to delays of 6–8 weeks, extension costs, and liquidated damages with the developer. The estimated saving in penalties and rework exceeded £120,000.