Source: https://www.quantsurv.com/resources/glossary/administration
Content format: Markdown version of the public page.
Content reviewed: 2026-09-30

# Administration: definition and example

A statutory insolvency procedure in which an administrator takes control of a company to pursue the relevant statutory objectives.

By [Jack Butler-Kettle](<https://www.quantsurv.com/about#who-we-are>) · Updated 30 September 2026

Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.

## What it means in practice

Read this alongside [GOV.UK guidance on administration](<https://www.gov.uk/put-your-company-into-administration>).

An administrator manages a company through a statutory insolvency process. An unpaid supplier needs to distinguish debts incurred before the appointment from any new work requested afterwards. Restrictions can affect enforcement, and the existence of a debt does not establish that it will be paid in full.

Confirm the appointment and preserve your account and contract records. Obtain advice from a solicitor or insolvency specialist on creditor claims, restrictions and any proposed further work.

## Worked example

### The facts

A subcontractor is owed £9,000 when the main contractor enters administration.

### What happens

1.  It verifies the administrator's details and submits evidence of the outstanding balance.
    
2.  It seeks clear written terms before agreeing to any further work.
    

### What this shows

The old debt is recorded separately from possible new work. The eventual distribution to creditors remains uncertain.

## Sources

1.  [Put your company into administration](<https://www.gov.uk/put-your-company-into-administration>). GOV.UK.
