Bradley attorney James Bailey was quoted in Construction Dive on seeing more construction companies filing for bankruptcy protection stemming from challenges caused by the COVID-19 pandemic, such as labor shortages and supply chain delays. In one recent case, Matcon Construction Services, a Tampa-based general contractor, filed paperwork in U.S. District Court due to its “insurmountable debt load” stemming from fixed-price and fixed-schedule contracts, inflation, and delays in shipping of materials needed for jobs, according to the filing.
As in Matcon’s case, recent bankruptcies in the construction industry are often at least partially caused by inflation and the associated increases in material, labor and financing costs, explained Bailey.
“Within the last six months or so, our firm has seen more [bankruptcy] matters related to construction,” said Bailey. “I wouldn’t say it’s unique to general contractors [but also] project owners [and] subcontractors.”
The full article “Florida Contractor Files for Chapter 11,” was published in Construction Dive on February 1, 2023.