Architects are facing significant losses following the collapse of ISG, with more than £190 million in unpaid bills revealed by administrators. The Companies House website has published documents showing that nearly 20 architects are among the trade creditors seeking to recover owed money from ISG Retail, ISG Engineering, and ISG Construction.
Among the affected architects are Stride Treglown, owed nearly £180,000, TP Bennett, out of pocket by £165,000, and GT3 Architects, claiming over £100,000 in unpaid fees. Unfortunately, ISG Construction’s supply chain companies are unlikely to recoup any of the £89.9 million owed to them as unsecured creditors. The total amount owed to architects alone stands at £869,781.
Administrators have listed 1,403 firms owed money by ISG Construction, with 13 companies, including engineers, owed more than £1 million each. ISG Retail, with reported liabilities of £120.2 million, is only expected to recover £7.1 million in assets, leaving creditors in a difficult position.
The impact of ISG’s collapse is felt across various projects, with schemes like the £70 million Regents Quarter offices-to-labs project and the redevelopment of Birmingham’s Moseley Road Baths put on hold. However, clients are working on contingency plans to restart stalled projects, such as the Fairwater Campus school in Cardiff.
The construction industry is facing challenges as a result of the collapse of ISG, highlighting the importance of financial stability and risk management in the sector. Architects and other suppliers must be vigilant in managing their finances and contracts to mitigate the risks of non-payment and insolvency in the future. It is crucial for all parties involved in construction projects to have clear payment terms and mechanisms in place to ensure fair compensation for services rendered.