Firms issue plea to ease Scottish construction lockdown

Aaron Morby 5 years ago
Share

Builders and plant hirers in Scotland are calling for an easing of their construction lockdown, warning the longer it lasts the fewer businesses will survive.

Federation of Master Builder Scotland director Gordon Nelson said that financial problems were mounting as each week went by.

He said: “There’s evidence that about two-thirds of small and medium-sized construction firms may only have the cash to survive another two to three months if the present circumstances continue.”

Scottish plant hire firms are so concerned that they have written directly to the First Minister Nicola Sturgeon.

Paul McCormack, managing director Blackwood Plant Hire, writing as a member of the Executive Committee of the Scottish Plant Owners Association, called for Scotland to be brought into line with the rest of the UK in allowing construction sites to operate.

“We feel that the different message from the Scottish Government regarding the construction industry compared to the rest of the UK is causing frustration throughout Scotland,” he said.

“Taylor Wimpey and Persimmon Homes announced that they will be re-starting construction sites next week but not in Scotland until they have guidance from the Scottish Government.”

“The SPOA Executive Committee do not understand why Scotland can be different from the rest of the UK,” he writes.

“Scottish based employees are working on sites in England and following the Construction Leadership Councils advice on safe working, but the same employee cannot work on a site in Scotland.

“The majority of our industry is highly geared with high HP/Lease payments that of course can be stopped by those finance companies who allow a payment holiday but that is only a deferral.

“When we restart our businesses we will require cash to pay the increased wages bills and supplier payments whilst we have to wait on our customers paying ourselves who will be in the same position after a 6-week shutdown.

McCormack warned: “In essence, the longer our industry is closed the fewer businesses will be able to survive. Insolvencies will cause more cost to the Government in statutory redundancy payments paid by the National Insurance Fund.”

Latest news

Wates inks £100m deal on first new-design prison houseblocks

HMP Onley expansion leads roll-out of new standardised design
4 hours ago

£122m deal to unlock Newcastle’s last brownfield site

Land remediation funding paves way for 2,500-home Forth Yards neighbourhood
5 hours ago

McLaren lands Heathrow logistics deal

1.6 hectare airport site to be transformed into modern warehouses
6 hours ago

McAlpine veteran to lead T&T’s project management drive

Former Olympic Stadium lead Mike O’Donnell takes lead role with focus on major capital project delivery
6 hours ago

IES snaps up Nexus Power out of administration

Utilities group strengthens expertise in 400kV jointing and offshore markets
6 hours ago

Thames Water tenders £120m water main rehab deal

Company seeks 2–5 contractors for London and South East renewal works
6 hours ago

Lower Thames Crossing to lead green planning reforms

New system to avoid another £100m HS2 bat tunnel
6 hours ago

Mace lands latest 30-storey City of London tower

85 Gracechurch Street near Leadenhall Market to be transformed
1 day ago

Vinci gets go-ahead for £250m Stockport 8 scheme

Contractor to start first phase of 435 net zero homes next year
1 day ago

£80m bid race to convert Oxford Debenhams into labs

Crown Estate advance plan to convert former six storey department store
1 day ago

Bennett steps-in to finish Guinness Covent Garden brewery

Original fit-out contractor Beck Interiors fell into administration
1 day ago

Work-to-rule set to hit Sellafield clean-up

Action by 1,500 construction workers across 34 contractors
1 day ago

Aureos breaks ground on £45m Howden Relief Road

Yorkshire road will pave way for 2,000-home scheme
1 day ago

Oxford United win green light for £150m all-electric stadium

Planners back 16,000-seat Kidlington ground with hotel, plaza and community hub
4 days ago

Demolition record as eight cooling towers come down

Watch Brown & Mason set record at Cottam Power Station
5 days ago

Hitachi Energy named for EGL3 converter station deal

Firm to build major HVDC converter stations in Aberdeenshire and West Norfolk
4 days ago

PAS NW secures landmark £20m civils deal in Lancashire

Groundworks firm wins infrastructure for 429-home Wain Homes scheme
4 days ago

Subcontractors wanted for jobs across the South West

Register now for latest Constructionline event in Bristol
4 days ago

Profits double at Octavius as road and rail work grows

Recent acquisitions add to turnover growth at infrastructure specialist
5 days ago

Quarterly construction output growth masks orders slide

New orders down by over 8% driven by fall in infrastructure and offices
5 days ago

Vinci UK swings back into profit after group restructure

£166m cash injected to strengthen building and facilities operations balance sheets
6 days ago

Staged procurement to make comeback as pricing risk bites

Developers turn to staged deals to control costs on big-ticket commercial jobs
5 days ago

McGee profit halves as project start delays hit

Revenue up 24% but profits fall on higher carry costs
5 days ago

Vistry to deliver 2,300 homes at Rugeley power station site

139-acre brownfield site has already been extensively remediated
5 days ago

Andrew Scott wins role on Swansea’s next big office build

Contractor appointed for detailed design of 800-desk city centre hub.
5 days ago

Knights Brown to start £29m Poole flood wall job

1.5km barrier to protect homes and unlock regeneration plans
5 days ago

Kier lands £16m first ECI job with Southern Water

Design deal covers nitrogen cut and UV upgrade at Hampshire wastewater sites
6 days ago

Watkin Jones seals deal on 200-bed student scheme

Bristol project will involve four brick buildings rising to seven storeys
6 days ago

Severfield brings in new CEO from Laing O’Rourke ranks

Everton Stadium job chief Paul McNerney to take the helm in the autumn
6 days ago

Balfour hits 3% construction margin target

Profit target finally reached after eight years
6 days ago