More bad news from Spain’s construction sector. Byco, known as Inbisa Construcción until a year ago, has announced that it filed for voluntary creditors’ bankruptcy on 3 February. The company, which employs around 300 people, is the latest in an ever-growing line of victims hit by rising costs, reduced profits and development conflicts.
At the end of 2018, in the residential sector, Byco was responsible for the construction of around 20 residential developments across Spain comprising almost 2,000 homes. Its clients included Inbisa Inmobiliaria, Laboral Kutxa, Q21, Solvia Development and Neinor Homes, amongst others.
The company has stated that, despite its financial woes, it aims to guarantee the payment of work and suppliers and to fulfil its existing commitments with clients. Moreover, it has revealed that plans are afoot to restructure the company to allow it to specialise in non-residential projects, as well as in the control and monitoring of construction work.
Byco’s fate is no exception. Since last summer, a dangerous trend has emerged in the construction sector with the collapse of Oproler, Isolux, Teginser, Sodelor and Balzola, amongst others. It seems that the traditional manual and turn-key operating models are no longer sustainable or commercially viable. As such, there have been calls from several industry leaders to move toward a more industrialised approach to house building.