More than 70 small construction companies have gone bust in the past month, in an indication of the growing impact the credit crunch is having on SMEs in the sector.

Notices in the London Gazette, the official UK journal for corporate failures, reveal that 76 individuals or companies have been wound up, gone bankrupt or become insolvent in March. The figures also show that 10 electrical contractors declared financial difficulties in the past week alone.

Ian Johnson, managing director of electrical engineer Eric Johnson of Northwich, based in Cheshire, said: 鈥淭he credit crunch is happening. People are taking big jobs on and underquoting them to get work and they鈥檝e got people who won鈥檛 pay. In the next 12 months I think we鈥檒l see a vast increase in companies going to the wall.鈥�

Two of Northwich鈥檚 regional competitors announced creditors鈥� meetings in the same week. Concept Electrical Design of Nantwich Road in Stanthorne, Cheshire, became insolvent on 18 March and Williams Electrical Contractors of Derby Road, Bootle, became insolvent on 27 March.

The 160-year old Ipswich firm Warners M&E went into administration on 11 March citing 鈥減roblems in the construction industry鈥�.

Last month, the 拢70m-turnover family business Hills Electrical & Mechanical was sold to Southern Electric Contracting for just 拢1.