The sudden collapse of Roberts Co’s Victorian operations has left billions in construction projects in limbo. Delays, cost overruns, and uncertainty have rocked the sector, revealing the fragile nature of the construction industry, where tight margins and complex payment chains are the norm.
For construction businesses, the fall of a key player like Roberts Co highlights how quickly things can spiral. With projects depending on timely completion and consistent cash flow, a single insolvency can cause widespread disruption.
At NCI, we had 33 active credit limits for Roberts Co, worth $12.8 million. Importantly, there were no signs of trouble and no adverse information or overdue accounts leading up to the collapse. Since the collapse, we have already seen 12 claims submitted at a value of $6.9 million. More claims are expected as clients confirm their exposures.
In situations like this, businesses usually ask, “What’s lost?” But with Trade Credit Insurance (TCI), the focus shifts to “What’s protected?” TCI not only covers losses but also gives businesses the confidence to keep moving forward, even when the unexpected happens.
For construction businesses, where payment delays and cash flow disruptions are common, TCI can mean the difference between staying afloat or sinking under unpaid invoices. It allows business owners to take on larger projects, offer extended terms to clients, and navigate uncertainty, knowing their receivables are protected.
The Roberts Co collapse has highlighted the need for robust protection in the construction sector. TCI isn’t just a safety net—it’s a strategic asset that helps businesses weather financial storms and keep projects on track.
If you’re concerned about your exposure or want to learn more about protecting your receivables, get in touch with NCI today.
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