FK Facades and FK Construction have gone into administration after the parent company fell into financial difficulties.
FK Group – which focuses on roofing, cladding, glazing and maintenance – has struggled with delays around the building safety regime, as it lost £5.9 million before tax in the year to 31 March 2024, with turnover dropping 23% year-on-year to £100.6 million.
The firm was locked in a legal dispute with investment company Paragon related to remedial works to a roof at a commercial property in Ashton Moss, Greater Manchester. FK Group lost, meaning Paragon was entitled to £80,500 in fees.
Some 40 jobs have been lost as part of the administration process.
Dr David Crosthwaite, chief economist at BCIS, said: “The administrations of FK Group’s Facades and Construction businesses appear to be symptomatic of the simultaneous risks construction businesses face.
“Building costs are going up, clients want value for money in a tough economy, gateway 2 decision-making is improving but not fast enough and the fallout of ISG’s collapse is still working its way through the system.
“Together, these factors are holding SME supplier margins between a rock and a hard place. The collapse of specialist firms like FK Facades shrinks the supplier pool and risks an inflationary impact on associated supplier prices – in this case, that’s cladding and other external solutions. It’s a vicious cycle.
“Data show insolvencies are still high in construction – the total in the 12 months to November 2025 was up by 22.6% on 2019 – and firms providing specialised construction activities consistently comprise the biggest share.
“But there are ways forward. Effective collaboration, financial due diligence and risk sharing between all clients and contractors are essential for providing suppliers with a more secure pipeline. It’s giving projects the best possible chance of getting off the ground to sustain suppliers and ensure that capacity and affordability is available.
“There’s also a lot to be said for perseverance in poor conditions. Construction was incredibly resilient last year despite rampant uncertainty and macroeconomic constraints. That same resilience will be just as important in 2026.”