A new industry report from the Chartered Institute of Building (CIOB) exposes a troubling paradox in the construction sector: small and medium-sized contractors are experiencing growth while simultaneously facing rising insolvency rates. Despite full order books, these firms are being squeezed by exploding material costs, extended payment terms, and wafer-thin margins that leave no buffer for unexpected cost overruns. The report points to structural weaknesses in procurement practices and cash-flow management as key drivers, with many firms effectively trading while insolvent. For site managers and tradespeople, the takeaway is stark: project volume alone no longer signals financial stability, and subcontractors should scrutinise main contractors' payment histories more carefully than ever.