Small contractors have 15% of turnover tied-up in late payments

Grant Prior 9 months ago
Share

A shock survey of SME contractors shows construction companies have an average of 15.4% of their annual turnover hit by late payment.

Research commissioned by finance specialist Crossflow Payments revealed the figure represents an estimated £22.6bn for the sector as a whole.

Late payments cause small construction companies to forgo investment with 21% saying they would increase marketing and sales budgets, while 21% said they would hire more staff, and another 18% said they would increase the wages of existing staff.

Tony Duggan, Crossflow Payments CEO, said: “Delays in receiving payment promptly from customers are acting as handbrake on small construction businesses, preventing them from making key investment decisions for the future, and ultimately stunting growth.

“In 2017, it should no longer be the case that businesses face such hurdles.”

Latest news

Profit rises outstrip new homes at Crest Nicholson

Pre-tax profits jump 6% while housing completions edge up by 2%
56 mins ago

Bidders day for North West Construction Hub framework

NWCH is holding two market testing days next month ahead of retendering its £2m-£9m project framework
38 mins ago

Wates starts £24m Rutland prison project

Enabling works start for 206-inmate block at at HMP Stocken
44 mins ago

Carillion construction staff left in limbo at Liverpool hospital

White collar workers slam lack of information since contractor's collapse
23 hours ago

Lakehouse back in operating profit after £36m loss

Social housing specialist back on track after streamlining property services arm
23 hours ago

Galliford Try takes over from Carillion on £96m Lincoln bypass

Contractor steps in temporarily as search continues for long-term replacement
1 day ago

Shortage of bricklayers and carpenters hits record high

Two thirds of smaller contractors struggling to fill site vacancies
23 hours ago

Hochtief wins £40m Exeter rail depot revamp

Work to start this summer on train maintenance depot at Exeter St Davids station
24 hours ago

Tarmac holds talks in bid to head off strike action

Union threatens stoppages at Essex block making plant
2 days ago

Mace bags £24m Chester shopping centre expansion

Cheshire Oaks Designer Outlet will get an extra 25,000 sq ft
2 days ago

Boost your online presence with the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
3 months ago

Kier saves 200 Carillion staff jobs to complete JVs

150 smart motorway contract staff jobs saved with 50 HS2 contract staff set to follow
2 days ago

ISG wins Lunar Rise trio of resi towers in Birmingham

Off-site construction to play major role when work gets underway this summer
2 days ago

Site safety stand-down to cover whole of construction

Stop. Make a Change initiative expands beyond original infrastructure sector
2 days ago

Builder picked for £50m Royal College of Art campus

Work to start this summer on new STEM teaching building in south London
2 days ago

Crane knocks scaffolder off lorry

Court hears how contractor failed to safely manage loading onto a lorry
2 days ago

Network Rail to pay Carillion workers for next three months

Suppliers will also be paid for work carried out post-insolvency
5 days ago

Cleveland Bridge opens Newport office

Steelwork contractor targets expansion in Wales and the south west
2 days ago

Carillion bankers set up £225m fund to help subcontractors

Task force launched to help stricken supply chain
5 days ago

HS2 reveals 3.4km Colne Valley viaduct design

New sleek-look railway viaduct will be one of the longest in the country
5 days ago

Barratt to build 2,700 homes in Swindon

House builder will invest over £180m in infrastructure and housing
5 days ago

Balfour Beatty in talks to head off more Crossrail strikes

Unite union announces plans for four more days of industrial action
5 days ago

Survey drone hits crane on construction site

Air accident investigators called in after drone strike
5 days ago

CITB calls on contractors to save Carillion apprentices

Skills body could be £3.8m better off following collapse
6 days ago

Betting Spy: West Ham and Leicester at the double

Hammers can beat Bournemouth despite yet another injury to Andy Carroll
5 days ago

Opinion: Carillion legacy must be pay and procurement reform

Carillion car-crash must finally jolt industry and government into action
6 days ago

Barratt London shelves 27-storey Aldgate tower project

Barratt abandons Phase 2 of city fringe tower scheme
6 days ago

Banks pledge not to pull plug on Carillion subcontractors

High street lenders promise raft of measure to help small businesses
7 days ago

NAO challenges value of PFI contracts

Little evidence PFI offers more construction cost certainty or operating efficiency, says watchdog
6 days ago

Skanska UK on alert as group plans 3,000 job cuts

Skanska Group says UK business focus to switch to core markets
7 days ago

Contractor services