PMC Civil Engineering goes into Administration

Portland Business Recovery has been appointed as Administrators for Dorset based civil engineering and groundworks company PMC Civil Engineering, an established and well known company in the building sector.

Trading since 2010,  PMC Civil Engineering’s clients included one of the UK’s largest house builders. Despite this and a recent increase in business volumes, they were unable to effectively manage the extra work load and employ the right subcontractors needed to fulfil tenders to the required standard, which has ultimately led to the business being placed into administration.

PMC Civil Engineering Administration

Mike Fortune, Joint Administrator from Portland, commented:

“Whilst an increase in turnover is generally considered a positive within a business, we have seen all too often that a substantial rise can lead to cash flow and operational issues due to the increased demand on working capital and funding requirements of new projects that arise as a result of taking on more staff and subcontractors.  PMC Civil Engineering’s rapid increase in turnover over a relatively short period, and the added demands on the management of the business as a result, led to issues regarding the quality of the workmanship and management of staff and subcontractors. This lead to additional costs of rectification and funds being withheld by clients, which ultimately affected the company’s reputation within the market when tendering for new contracts.”

Portland are currently working with the directors of the company and quantity surveyors to preserve and secure, where possible, any funds due under contracts for the benefit of creditors.