Scottish firms run out of cash after hard site lockdown

Aaron Morby 6 years ago
Share

Cashflow has completely dried up for nearly 80% of construction firms in Scotland.

The impact of the Scottish Government’s decision to call for a full construction lockdown of all but essential work has been revealed in a major survey carried out by the newly-established Construction Industry Coronavirus (CICV) Forum.

Over 370 firms representing a wide spread of activity from electrical, plumbing and roofing specialists, to  surveyors and architects, took part in the survey.

More than half the firms said they were owed vital monies from public and private sector clients, with invoices now overdue.

More than two-thirds had furloughed staff, and over a third had shut completely.

More than a quarter currently have staff and subcontractors in self-isolation.

John McKinney, secretary of the key Forum trade body members, said: “These disturbing results illustrate very clearly that the construction sector in Scotland is being hard hit, despite the measures that have been put in place to alleviate the pain.

“It is clearly incumbent on all branches of government and public bodies to step up efforts to expedite payments under the Coronavirus Job Retention Scheme announced by the Chancellor.

“However, there is a danger that even this may be too late for many firms, especially smaller enterprises.”

One respondent said: “Cashflow is a major concern; we will only last a maximum of six weeks if government funding or bank loans don’t come through.

“We will then have to start making staff redundant.”

Another contractor voiced his frustration at those businesses still ignoring the lockdown, saying: “I’d like to see a clampdown across the whole industry, with penalties enforced on those flouting government instructions.”

Respondents also called for better information from the UK and Scottish Governments, with requests for greater clarity over both what work can be carried out and the financial and commercial implications of the virus.

Latest news

Thieves steal 6,000 litres of petrol from motorway site

Raid on Galliford Try M5 upgrade job
4 hours ago

Plan unveiled for new London high-rise hospital in Paddington

£2bn St Mary's 30-storey super-hospital set to reshape London skyline
8 minutes ago

Gleeson warns on profits after major land sale delay

Biggest planned land disposal pushed into next financial year as buyers hesitate
7 hours ago

Galliford Try lands £39m East London SEND school build

Green light for main works to build one of the UK's largest specialist schools in Gidea Park
7 hours ago

Ceiling specialist Zentia falls into administration

170 jobs lost as manufacturer hit by high energy costs and slower market
7 hours ago

Mace bags top spot in the May contracts rankings

Norwich John Innes Centre research complex win secures pole position
7 hours ago

Tilbury Douglas reshuffles regional building team

Order book hits £1.6bn as Simon Butler steps up to lead growth plan
24 hours ago

Council building workers to strike over pay

More than a 1,000 craftworkers to kick-off action over 3.7% pay offer
23 hours ago

Rhatigan’s UK arm powers towards £200m turnover mark

Irish contractors UK business grows seven fold in five years
1 day ago

Glencar appoints former Curo director

Patrick Mays joins as Group Business Development Director
7 hours ago

Getjar revenue up a third as Gateway 2 bottlenecks start to ease

Concrete frame specialist expands cut-and-carve and precast operations
1 day ago

Curo Living changes name after construction arm collapse

Residential contractor rebrands as Sorel Living
1 day ago

Brick firms buys fencing company

BRCK Group acquires £40m turnover Jacksons
1 day ago

National Grid delay threatens McAlpine’s £1.25bn steel furnace finish

Substation works to set back commissioning of Port Talbot electric arc furnace by up to a year
1 day ago

£50m rescue loan to keep Manchester’s tallest tower on track

Viability gap bridged as GMCA backs 76-storey Nobu tower project
1 day ago

Kier opens £70m subcontractor hunt on Army barracks rebuild

Groundworks, steelwork and envelope packages head to market for Aldershot job
1 day ago

Knights Brown rides coastal work boom to record profit haul

£136m turnover firm plots further growth as coastal, energy and water work powers up business
4 days ago

Raft of redundancies at consultant Cundall

Cundall streamlines operations with job losses among 1,300 staff
4 days ago

Erith bags Ratcliffe power station demolition mega-job

Four-year demolition plan for Britain's last coal power station
4 days ago

McAlpine hires former Wates director as healthcare MD

Simon Kydd replaces Stuart McArthur who steps down after 10 years
4 days ago

Scottish Hydro sparks £7.4bn contractor framework race

Contractors invited to bid for six lots covering civils, buildings and power infrastructure across Scotland
5 days ago

Watkin Jones green light for Cardiff 33-storey co-living tower

Custom House Street scheme will provide 400 co-living studios
5 days ago

A9 dualling race starts for £1.9bn mega framework

New delivery model for final 58 miles of Perth–Inverness upgrade
5 days ago

House building downturn drags construction to six-year low

PMI survey reveals steepest contraction since 2020
5 days ago

Green light for £59m Swadlincote civic and leisure hub

Enabling works due to start this summer
5 days ago

Hollywood giant gears up for £5bn UK resort build

Government commits £1.3bn to infrastructure package as construction start nears
5 days ago

Hinkley workers locked-out of site after canteen sit-in

Hundreds of M&E staff sent home without pay after safety protest
5 days ago

BSR turns the tide as approvals outpace new home applications

Regulator determines schemes covering nearly 15,000 homes in latest 12-week period
5 days ago

Hunt starts for £60m Crystal Palace Park housing contractor

Clarion moves quickly to market after securing consent for 202 affordable homes
5 days ago

Labourer drowns in water-filled site excavation

Worker living next to "death trap" site dies making his way home after a night out
5 days ago