Subcontractors hit by majors and late payment

Grant Prior 12 years ago
Share

Major contractors muscling-in on smaller contracts are proving a major headache for construction SMEs.

A third of firms quizzed for a new report by pre-qualification register Constructionline said competition from larger companies is the biggest challenge local contractors face in tender competitions.

Late payment is still a blight on the industry with 56% of the 1,300 firms quizzed saying invoices took even later to settle during the last year.

A third also rated winning work and finding opportunities as the biggest obstacles to their future success.

On a more positive note, 74% had not seen any of their projects cancelled in the past three months while 60% have secured most of their recent project wins from the private sector.

When acting as sub-contractors, 56% had seen payment times lengthen in the past 12 months, with 34% having been asked for rebates, and 41% have seen increased retention periods.

But of those acting as principal contractors only 40% had seen payment times increase, 26% asked for rebates and 27% suffered longer retention periods.

Constructionline director Philip Prince said: “SMEs are the backbone of UK construction so their survival is critical to the industry’s long term health.

“Stricter rules on payment times, especially to protect subcontractors, would give a huge helping hand to the thousands of firms for whom cash is king.”

Latest news

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
2 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
1 day ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
1 day ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
1 day ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
2 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
2 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
2 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
2 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
2 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
2 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
2 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
3 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
3 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
3 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
3 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
3 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
3 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
3 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
4 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
4 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
4 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
4 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
4 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
4 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
4 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
4 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
4 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
4 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
5 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
5 days ago

Contractor services