How do you plan for chaos? When construction giants like ISG collapse, they don’t just take themselves down—they send shockwaves rippling through the industry. For niche design consultancies, the fallout is often catastrophic. Unpaid invoices, lost contracts, and financial uncertainty are just the beginning.
The ISG Implosion: A Warning Sign for Everyone
In October 2024, ISG’s financial collapse revealed over £800 million in debts. Among the casualties were subcontractors, service providers, and dozens of design consultancies whose unpaid invoices made up a significant chunk of their annual revenue. For firms that rely on upfront work, the loss wasn’t just a hit to their books—it was a crisis of survival.
“Our work is intangible. You can’t resell a custom design,” says one Rights of Light consultant who’s still chasing payments. Unlike suppliers who can repurpose materials, design firms are often left with nothing but legal headaches and slim chances of recovery.
Why Does This Keep Happening?
Non-payment isn’t new, but it’s escalating. According to the Federation of Small Businesses (FSB), over 50% of small firms in the UK construction supply chain reported late or non-payment in 2024. For design consultancies, this risk is amplified—their work is frontloaded and hard to secure with physical guarantees. When a big client falls, the ripple effect can take out entire teams.
The Human Cost: Talent on the Move
The fallout isn’t just financial. CADagency’s 2025 Employment Survey found that 45% of design professionals are actively considering job changes, with job stability cited as their top concern. This churn compounds the problem for employers who are already stretched thin. Retaining talent in this climate requires more than competitive salaries—it demands trust, transparency, and a proactive approach to financial stability.
Can Design Firms Protect Themselves?
Yes—but it takes a rethink.
- Lock Down Payments: Forget back-loaded contracts. Move to milestone-based payments or require deposits upfront. No cash, no designs.
- Leverage the Law: Make sure your contracts comply with the Late Payment of Commercial Debts Act. It’s not a cure-all, but it’s a solid safety net.
- Diversify, Always: If 70% of your revenue comes from one client, you’re exposed. Spread the risk by working with smaller clients across different sectors.
- Keep an Eye on the Big Picture: Use forecasting tools to spot potential payment issues early. If a client’s accounts look shaky, don’t wait for disaster—pivot fast.
The Bigger Picture: Lessons for 2025
ISG’s collapse is a brutal reminder that no one is too big to fail. For design consultancies, the lesson is clear: control what you can. Tighten contracts, diversify your portfolio, and be ruthless about protecting your cash flow. In an industry built on precision, a little chaos planning can make all the difference.