Your other customers may depend on the builder that just collapsed

The direct loss may not describe the whole exposure

Your largest builder enters liquidation and represents a substantial share of revenue. Before assuming the remaining customers are unaffected, examine their connection to the same projects or funding chain. Different names on the debtor list do not necessarily mean independent sources of cash. Identify facts and uncertainties without treating every associated business as insolvent.

Map the project relationships

Imagine a contractor also supplying two subcontractors working on the collapsed builder's sites. List the relevant jobs, invoices and future work. Ask what is confirmed about continuing activity and payment arrangements through appropriate contacts. Do not assume the subcontractors have failed merely because their customer has collapsed, but do not ignore the dependency when assessing the remaining pipeline.

Show separate forecast scenarios

business.gov.au explains that cash-flow forecasts estimate future receipts and costs and should identify assumptions. Keep confirmed obligations separate from possible delays affecting connected customers. Test a scenario in which related project receipts arrive later or work reduces. The exercise should reveal exposure, not replace evidence with a blanket assumption that every connected invoice is lost.

Source: business.gov.au: Set up a cash flow statement

Check for double counting

The same project may appear in several reports as direct builder work, subcontract supply and a sales opportunity. Trace which amounts are already invoiced, committed or merely prospective. In the contractor's example, adding every report without reconciliation could overstate both lost revenue and replacement opportunities. Use project references to make the relationship understandable.

Prioritise specific conversations

Contact the relevant customers with factual questions about approved work, payment status and future requirements. Avoid spreading rumours or disclosing another customer's confidential information. Record the replies and their limits. An assurance that a project will continue should be checked against the particular work and funding arrangements on which your forecast depends.

Revise the recovery plan from the wider picture

Give advisers the direct loss, connected exposure and supported remaining work together. Review purchasing, staffing and creditor discussions using that information. The business needs a realistic view of concentration across projects as well as customer names. Understanding the indirect links can prevent a survival plan from depending on revenue that is exposed to the same event that caused the original shortfall.