MANCHESTER, UK. December 10th 2025 – Contractor failures are becoming an increasingly serious threat to UK developers, with projects stalling, budgets escalating, and contractors walking off site mid-build. According to Tim Hamlett FRICS, Director of North-West based Kingsmead Consultants and one of the UK’s most respected construction cost and contract specialists, the industry is facing a commercial crisis that developers can no longer afford to ignore.
Hamlett, a Chartered Quantity Surveyor with decades of experience in construction law, cost control, and dispute resolution, believes the root causes extend far beyond the material shortages that previously dominated headlines.
“Too many developers are still signing contracts on trust alone,” he said. “Without proper checks on contractor stability and clear commercial oversight, you’re effectively gambling your profit before the first trench is dug.”
Across the Northwest and wider UK, developers are increasingly encountering the same problems: contractors collapsing mid-project, overstated claims, vague contract terms, and payment disputes that stall progress for months. Hamlett warns that the commercial warning signs are usually visible early — but only if developers have the right expertise supporting them.
“A single contractor failure can derail a profitable scheme overnight,” he added. “The financial and reputational damage can take years to recover from. The good news is that most risks are preventable with proper due diligence and rigorous cost control.”
Behind the rise in contractor instability are fixed-price contracts signed before 2023, when inflation, labour costs, and materials were considerably lower. As margins erode, cashflow pressure intensifies, leaving contractors vulnerable to insolvency. Subcontractors experience delayed payments, site productivity drops, and in many cases, projects grind to a halt.
Hamlett believes this growing trend highlights a critical gap in the way many developers approach procurement and contract management.
“Developers shouldn’t be operating blind,” he said. “They need independent cost checks, structured payment controls, and clear contractual safeguards. When developers rely solely on what they’re told rather than what is evidenced, every major risk sits with them.”
Kingsmead Consultants has seen a significant increase in developers seeking assistance after projects have already experienced disruption. However, Hamlett stresses that early involvement is the most effective form of protection.
“Our role is to protect your investment from day one,” he said. “From assessing contractor financial health to verifying costs and ensuring every payment reflects real progress, we give developers transparency and confidence at every stage of the build.”
Kingsmead’s Chartered Quantity Surveyors provide a comprehensive suite of risk-reducing commercial services, including:
- Pre-contract due diligence to assess contractor financial stability and contractual risks.
- Cost verification and tender benchmarking to identify inflated pricing before contracts are signed.
- Robust contract drafting to establish clear payment terms, variation procedures, and termination safeguards.
- Ongoing financial monitoring to ensure valuations are accurate and reflect genuine progress on site.
- Specialist project recovery support to re-tender and stabilise schemes following contractor failure.
For developers delivering projects between £500k and £10m, Hamlett believes strong commercial control is no longer optional — it is essential.
“Whether your goal is to build to sell or to retain assets long-term, cost control is the foundation of success,” he said. “A Chartered Quantity Surveyor gives you that control, protecting your margins, your programme, and ultimately, your reputation.”
Kingsmead Consultants provides MRICS-accredited quantity surveying, cost assurance, and dispute resolution services across the UK, supporting developers, investors, and contractors to deliver projects with confidence and certainty.
For more information about Kingsmead Consultants and their services, including quantity surveyors Manchester, visit the link.
ENDS