Construction industry Subcontractors are in the unfortunate position of having to write off an average of approximately 16,000 pounds each year in the UK. Bibby,the financial services firm, surveyed 250 subcontractors. They found that these construction firms were often subjected to disputes with their main contractors or clients once work has been completed. The subcontractors were also hit with penalty clauses, adding to their woes.
Bibby also found that subcontractors, on average, had written off 51,000 pounds each in bad debts over a 3 year period. Many subcontractors complained that they had received unclear briefs from the main contractor. Others complained that they had to contend with changes to the work brief during the job.
Main contractors contracts too complicated
Another complaint was that the procurement and contracts from main contractors was too complicated and needed to be simplified. Most felt that contracts with the larger companies were unnecessarily complicated. Some subcontractors felt that they needed support to check all contracts carefully to avoid exposing themselves to possible losses. The risk of losing work was the reason most of them felt they had to accept the terms and conditions which were stipulated by main contractors.
As many as one in five of the firms surveyed do not check contracts thoroughly before signing them.
On average, subcontractors said that they wait an average of 42 days before receiving payment from main contractors. This delay in payment, they said, was the biggest threat to their business.
We can release you from the financials so you can concentrate on production
At QStimate we are keenly aware of the pitfalls faced by those subcontracting in the construction industry. We deal with the commercials of main contractors and small contractors on a daily basis. We understand that most need help controlling their finances, releasing them to concentrate on production. We have developed a one-of-a-kind package for commercial management to take the burden of finances off the shoulders of contractors. You will be astonished how little we charge and what a big difference it will make to your business, your stress levels and, ultimately, to your life! Contact us.