Balfour Beatty plc (LSE:BBY) has offered to help any of its supply chain subcontractors hit by the collapse of ISG, the construction company and UK government contractor that called in administrators last week.
The construction and engineering giant made a move to offer support for cashflow pressures, to prevent any shockwaves from the failure of ISG to affect its own business and projects, according to a report in Construction Enquirer.
Many subcontractors are expected to have been left reeling, as ISG's final accounts showed it owed £710 million in trade and other payments to suppliers before it went into administration.
The trade title reported that Balfour Beatty UK's construction procurement department contacted subcontractors to see how badly the ISG collapse would impact their business.
"We wanted to reach out to understand the levels of support we may need to offer you in these challenging times," an email reportedly said:
"We understand that this will have an effect within our industry and are contacting our key supply chain to understand if this will have an impact on your business, and what that may look like with regards to your exposure."