The collapse of construction giant ISG is "devastating" for the sector and could lead to other firms going under, the boss of an industry trade body has said. The chief executive of Build UK, Suzannah Nichol, told the BBC’s Today programme that many smaller firms in the supply chain would not now receive money, putting their future at risk.

The crisis engulfing ISG raises questions about the entire UK construction sector, not just its own weak business model.

In a shocking turn of events, ISG Construction, one of the UK’s largest construction firms, has officially entered administration after months of financial uncertainty and failed attempts to secure a sale.

The construction industry is in shock after major firm ISG fell into administration, leaving thousands of workers unemployed and affecting smaller firms in the supply chain. Some 2,200 ISG workers have been made redundant,

The collapse of construction group ISG with the loss of more than 2,000 jobs is going to be “devastating” for the industry and could result in some of its supply chain partners also folding, the head of an industry trade body has warned.

UK construction firm ISG has collapsed. ISG Central Services Limited, ISG Interior Services Group UK Limited, ISG Fit Out Limited, ISG Engineering Services Limited, ISG UK Retail Limited, ISG Retail Limited, ISG Construction Limited, and ISG Jackson Limited have entered administration.

ISG, which builds prisons and police stations, employs 2400 people and is being closely monitored by the Cabinet Office as it heads for administration, Sky News learns.

ISG is involved in 69 central government projects totalling more than £1 billion, including work on prisons for the Ministry of Justice, data analysts Barbour ABI said. A spokesp

The industry giant has completed several projects across Ireland and acquired Dublin-headquartered construction specialists ESS Group in 2022