Industry reacts to Ardmore administration on ‘sad day’ for construction sector

The construction sector has expressed shock and concern following the news that Ardmore Construction Group and several of its subsidiaries have entered administration, affecting staff, subcontractors, and suppliers.

The collapse, triggered by a Building Liability Order linked to historic fire safety defects at the Admiralty Quarter in Portsmouth, has drawn widespread reaction across the industry.

Lee Powell, managing director at HBC Construction, described the news as a “sad day for the construction sector”.

“No one in construction takes any satisfaction when firms enter administration. It sends panic to every construction business leader how close such an event could be to their own business if a number of things start to go wrong simultaneously,” he said.

He highlighted the high-risk, low-margin nature of the industry, stressing that firms must balance growth with careful project selection, strong teams, and meticulous cash management.

Daniel Mackie, director at Hamilton Building Contractors, echoed these concerns, saying he is “always left with a great sense of sadness when you see other construction businesses fail”, particularly given their size and the many people affected.

He pointed to systemic issues in the sector.

“Construction typically accounts for one of the largest percentages of all administrations and liquidations year in, year out,” he said.

“The procurement model of ‘race to the bottom’ is inherently wrong.

“Quality, competency, experience, and financial standing should be prioritised above cost, but sadly, despite the lessons the industry should have learned, they often aren’t.”

“It’s a sad day for the construction sector.”

Alongside Powell and Mackie, Dan Price, pre-construction director at Harmony Fire, highlighted the human impact: “Talented, hardworking people are often the ones most affected.

“Many will be facing uncertainty despite having delivered exceptional projects, built strong client relationships, and given years of commitment.”

Each of the industry figures expressed concern for all those affected, highlighting the disruption facing staff, subcontractors, and suppliers.

Former Ardmore HSQE employee Simona Dima shared a personal reflection: “Ardmore was more than a company to me.

“It was the place that gave me my opportunity, believed in me, and helped launch my career.

“It may sound cliché, but Ardmore felt like a family… No matter what happens, I will always speak highly of Ardmore and be grateful for everything it gave me.”

The news serves as a stark reminder of the sector’s challenges – from legacy project liabilities to high-risk financial models – and the wider consequences for employees and subcontractors when large firms fail.

The Ardmore operating companies that entered administration yesterday include £343.8 million Ardmore Construction Group, as well as Ardmore Major Projects, Regeneration, Fit-out, Hotels & Commercial, and Landmark.

Insolvency firm BTG has been appointed to manage the process.

The wider £345.8 million Ardmore Group has applied for a moratorium to continue trading while preparing an appeal against the ruling.

The group’s contracting arm, Ardmore Construction Limited (ACL), collapsed last year in an effort to protect the wider business. Ardmore said the judgment has severely affected client confidence, payment terms, and certified values across ongoing projects. 

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