Scottish firms run out of cash after hard site lockdown

Aaron Morby 2 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

26 firms win £7bn schools framework – full list

B&K, Willmott Dixon, BAM, Kier and Wates chalk up both northern and southern major project lots
17 hours ago

Balfour Beatty launches neurodiverse site cabins

Cabins adapted for visually impaired and light-sensitive builders will become standard on Balfour sites
2 hours ago

French specialist Matière to install HS2 cut and cover tunnels

Stanton Precast wins pre-cast segment deal for 'green tunnels'
20 hours ago

Scottish house builder buys rival for £56m

Springfield buys Tulloch Homes to expand presence in the Highlands
4 hours ago

Wates wins contract for underground houses

Construction to start next year on earth sheltered homes in Battle, East Sussex
20 hours ago

VAT dodging electrician banned for five years

Company director barred after Insolvency Service probe
22 hours ago

£11m in extra brownfield grants awarded – list

Twenty-three sites receive brownfield funding in second tranche of grants
23 hours ago

GMI lands £30m helicopter logistic hub

Building work starts on Yeovil hub for manufacturer Leonardo
1 day ago

HS2 Euston team to get architect-designed site huts

Up to 2,500 workers and 150 students could be using the welfare facility on a daily basis
1 day ago

Firms readied for £1.3bn highways surfacing framework

Second supplier day to be held on 2 December ahead of March tender invite
1 day ago

Countryside Properties sets aside £41m for recladding

Progress made towards becoming 100% focused lower risk Partnerships business
1 day ago

BAM pairing takes £26m Sunderland train station

Demolition work will start next year on first phase southern entrance area
1 day ago

Osborne wins £21m London City grade II interior refurb

Work to start in the New Year on 84 Moorgate upgrade
2 days ago

Bouygues bags latest phase of Portobello Square regen

Construction to start next summer on North Kensington site
2 days ago

VolkerFitzpatrick wins £26m storage sheds deal

Firm has delivered several projects at the Daventry International Rail Terminal over 11 years
2 days ago

Massive Stewart Milne development goes into administration

Countesswells new town now in hands of administrators
5 days ago

Race starts for £2.5bn Ministry of Justice framework

Frameworks cover projects up to £30m and are divided into regional lots
2 days ago

London Uni submits North Acton high-rise tower cluster plan

Plans in for eight buildings ranging between 6-32 storeys in North Acton
2 days ago

Galliard forms new partnership to build 850 homes

Work to start on £300m Brimingham and Ipswich developments by next spring
2 days ago

Engineers battle to repair power network after Storm Arwen

Large sections of overhead power lines need to be rebuilt after "worst damage for 20 years"
2 days ago

Leeds £270m Lisbon Square towers approved

Work to start in the Spring on residential and office scheme
3 days ago

Green light for £65m canalside scheme in Wolverhamption

Construction to start next summer on transformation of brownfield site
2 days ago

Ex-Laing O’Rourke boss to head rejigged BAM UK business

BAM names new chief for combined UK and Ireland businesses in growth push
5 days ago

Robertson submits £150m Cardiff Arena plan

Arena work to start next Autumn with wider Atlantic Wharf regen scheme to follow
5 days ago

HS2 pioneers first ‘box-slide’ bridge over motorway

BBV will start initial site preparation over the Christmas holiday period
6 days ago

Rocks smash site huts as quarry blast goes wrong

Breedon Trading Ltd fined £300,000 after court hears worker was forced to run for cover
5 days ago

Sellafield names £250m HVAC key delivery partners

Balfour Beatty Kilpatrick and EJ Parker Technical Services take first integrated team deal
6 days ago

Cut-price home builds quadruple maintenance cost

Mount Anvil study attempts to quantify link between Capex and Opex costs
5 days ago

Ray O’Rourke to step down from Group Chief Executive role

New CEO Seamus French to join from mining giant Anglo American
6 days ago

TClarke on track for £500m revenue target

Orders surge to £525m setting fresh record for M&E specialist
6 days ago

Contractor services