Bad Debt in the Roofing Industry
Let’s talk about something that’s a huge issue in our industry — bad debt. It’s common, it’s crippling, and to be blunt — it’s corrupt.
If you’ve been following RMG, you’ll know we’re a family-run business built on hard graft, honesty, and a bit of grit. One of our first ever commercial jobs was a hotel refurbishment. It started off small — we were new to the commercial side and wanted to ease ourselves in. But that “small” job quickly turned into a monster — worth over £550,000 by the end with variations and added work.
We agreed 30-day payment terms. Sounded fair. But the reality? Couldn’t have been further from it. First payment - late by two weeks. After that, we were chasing payments for months. Basically funding the job ourselves, while trying to keep the business alive.
Looking back at what the project became, I wouldn’t have touched it with a barge pole knowing the extent of the issues at the site. But we were determined to break into the commercial world - and though we are now we’re thriving in it, our introduction was a complete baptism of fire.
The hotel was ancient, the roof was completely shot, and the budget wasn’t even close to what was needed. We carried out a full inspection and found the majority of the roof spaces needed renewing. So we cracked on. Roof by roof, section by section, replacing and overlaying where the project budget allowed (and even quoting for works that were far lower than they should have been so that we maintained our position on the project - a mistake we will not make again).
We didn’t cut a single corner. We worked with premium high-end roofing products, kept standards high, and went through numerous site inspections and formal sign-offs with no issues and a high regard for the quality of our work. Where we were allowed, we worked closely with other contractors on site to try and ensure a smooth and streamlined project delivery. We refused to let others chaos lower our standards. That’s not who we are.
Then came the last day. We were just tidying up the final roof when someone walked over to one of our lads and asked what we were still doing on site. “Finishing off,” we said.
Their reply? “The company’s gone into administration.”
Just like that. No warning. No heads-up. Our final invoice over £70,000 was gone. That was all our profit. All our hard work. Wiped out.
Even then, I told the team “Let’s just finish tidying up.” I didn’t want to leave it messy. I wanted to leave it right.
But we were removed from site immediately. "Health and safety" they said. Concerns about looting and stealing materials; which is apparently what often happens when companies go under (we had never seen anything like it!).
We even emailed the administrators asking if we could return - not to chase money, but just to tidy up. That’s how we operate. That’s how we wanted to finish.
Even after all of that - being treated like nothing, losing tens of thousands - we still wanted to leave things professionally.
Because RMG isn’t just a business to me, It’s in my blood.
I started this company on my own. Just me and a van.
I’ve got “RMG” engraved in lead above my front door at home.
I’ve got it welded into the flat roof at the back of my property.
This isn’t just a logo — it’s a part of who I am.
And there is no way I’m letting anyone or anything sink it.
That job?
Yeah, it taught me a lot.
I wouldn’t say it taught me £70,000 worth of lessons! but it definitely opened my eyes.
Our first foray into the commercial world couldn't have gone worse…
And we still came out shining.
That says everything about RMG.
After it all, I turned to my wife and business partner and said:
“If that doesn’t show what we’re about and how we present ourselves, I don’t know what does.”
I was proud then.
And I still am.
You can’t let these things eat you up.
Take the hit. Learn the lesson. Move on.
And most importantly — don’t let it happen again.
At RMG, we now put huge safeguards in place to protect ourselves. We learned the hard way but even with that awful experience, there has definitely been some good that has come from the situation.
- We made great relationships with some fantastic companies and contractors who we still work with today.
- It has enabled us to put in place insurances and legal/financial checks for any future project/customer
- It showed us areas where we could improve our own ways of working to make our delivery even better for our next customer
- It gave us a HUGE amount of installation experience over flat, pitched, lead and window sectors of our industry working with some challenging roof spaces/shapes and some fabulous products which helped elevate our work quality to a very high level
If this newsletter helps just one person pause and think twice before taking on a risky job, then I’ve done what I set out to do.
No amount of money is worth being treated like that.
No project is worth putting your health and your business on the line.
Do your due diligence.
Check who you’re working for.
And remember, it’s okay to walk away from something or someone that doesn’t feel right just because its a high value project which will look good on social media.
Thanks for reading.
More real stories from the front line of roofing coming soon.
—
Daryl Cooke
Director, RMG
24 Years in the Roofing Game
