Create Construction calls in administrators

Following what it described as “a very challenging trading period” the directors of Create Construction have appointed administrators from RSM. Other companies within the Create Group are unaffected.

Blackpool-based Create’s directors said they had exhausted other options. A statement said: “The pandemic has severely affected both our clients and our supply chain’s ability to meet their contractual arrangements.

“An overrun in projects in both time and cost, a number of supply chain failures and delays to a secured pipeline of projects, has ultimately made the company unviable.

“We have been working with advisors, clients and funders to facilitate, where possible, the transfer of the contractual position of schemes on site, to allow the completion of these projects and to protect the creditors position as best we can.”

Projects that Create Construction had been involved in include Discovery Quay, where a £30m second phase won approval in September 2020 on a project where Create was main contractor, working with Bricks Capital.

In July, Create started as main contractor on a £7m extension at the Hampton by Hilton hotel in Blackpool.

The Create Construction statement continued: “The pandemic has affected every area of our business, from delays in pipeline projects achieving planning approval and concluding funding, to access being restricted or denied into completed operational student accommodation buildings to allow us to complete 12 months defects works and to release significant retention monies owed to our supply chain.

“Having set the business up in 2006, we have worked hard to build our reputation in a competitive sector and we are proud of the fabulous schemes that we have delivered over the years.  The construction industry continues to be hit hard as a result of the pandemic, with significant rising costs and limited resources available. As a consequence, we have seen the failure of some reputable and established companies like ourselves.”

Other casualties in a sector that has seen several high profile names fall include Bardsley, CPUK and Cruden Construction, which appointed KPMG in summer 2020. Artez’s construction business entered voluntary liquidation earlier this month.

The Create statement concluded: “At the heart of Create Construction, was a very talented and loyal workforce, which very much formed the DNA of the business. We take some comfort that the majority of our staff have found new positions and we have no doubt that they will be valuable assets to those companies.

“We would like to thank our wonderful staff, colleagues, clients, consultants and supply chain members with whom we have worked with over the last 16 years.”

The company said its directors will be assisting the administrators to try and obtain the best possible outcome for all parties affected.

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By Julia Hatmaker

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