The construction industry consistently cites late payments as one of its major concerns. It is so widespread, for some companies it has even become the default. On average, a subcontractor is forced to write off an average of £16,500 per annum. Why do we as an industry find this acceptable?
Copronet identified that a large majority of specialists, sub-contractors and clients are either unaware of the importance of carrying out continual financial due diligence on their supply chain or they do not know how to set about doing it. This oversight impacts both project delivery and livelihoods.
Within the last 12 months alone the industry has seen the demise of big names such as Carillion and Dawnus. Carillion went into insolvency in 2018 with an estimate of up to £1bn in retentions owed to subcontractors. Ongoing fears persist about such substantial players as KIER. A day does not go by without the industry press reporting on another business failure which impacts upon every entity in the relevant supply chain.
Copronet has worked hard to present a solution in conjunction with Creditsafe. The Finance Checker tool is a financial due diligence tool that not only presents users with current information about their business partners but also presents them with alerts, should certain trigger events take place. It is an innovative solution which presents users with a simple and affordable way of protecting their workforce. It gives your business critical information so that you are able to take informed steps to protect both your business assets and the livelihood of your team.
As an industry, we must stop accepting late or unfulfilled payments and ensure we use all available tools to generate the highest success for our projects.