An exclusive supplier survey by Constructionline for the Enquirer revealed that 88% of firms quizzed have faced competition from firms putting in suicide bids.

The survey of more than 600 firms by the pre-qualification specialist highlighted the tough market conditions for construction companies selling their services.

It revealed that 73% of firms are seeing contract terms getting more onerous while only 2% said payment was showing any sign of speeding-up.

Philip Prince, sales and marketing director at Constructionline, said: “The survey shows one clear result of the difficult market conditions, plus the resultant pain for suppliers.

“Payment terms is a big issue and can be seen from the likes of the NSCC Fair Payment campaign.

“There is evidence of action being taken at the client side, for example central government’s commitment to fair payment practices, but our survey shows more needs to be done.

“According to ONS data, the construction workforce has dipped to its lowest level since 2001, losing many skilled and trained workers as a result.

“To ensure that our industry doesn’t face a skills shortage, clients need to focus support, particularly for SMEs. Stricter rules on payment times and agreeing contract terms before delivering orders would help.

“We know that construction procurement can be an onerous process for both buyers and suppliers.

“This is why reducing the burden of pre-qualification (PQQ) in the construction industry is Constructionline’s top priority.

“By working with buyers and suppliers to promote better buying practices and removing PQQ duplication, we hope to continue saving buyers and suppliers time and money, as well as improving efficiency in order to get the industry moving.”