How to ensure you get paid on time in the Construction Industry
During the recent weeks we have seen the issues with Carillion affect a large number of sub contractors and small business.
It is commonly known that the construction industry is one of the hardest to ensure you receive payment on time as there are such a lot of variable factors that can delay payment.
Recent statistics show the need to have your internal processes in order to make sure you have the best chance to get paid on time:
- On average, subcontractors take on 40 new contracts each year and the average value of a contract is £205,077.
- Commercial contracts (45%), housebuilding (24%) and industrial contracts (9%) are the greatest opportunities to secure more work.
- Over half (55%) believe they must accept terms and conditions stipulated by main contractors or risk losing work.
- On average, firms have written off £50,772 in bad debt over the past three years.
- Over a third (38%) say construction contracts are too complex to understand.
We have worked in the Construction industry for over 20 years and helped a large number of clients to manage their internal Credit Management with effective processes and procedures. Knowing the details of your cashflow can help you to manage a situation before it arrives.
We have recently launched our helpful toolkits which can give a company the ability to identify the number of debtor days they have in order to mange this process and reduce it where possible. These are available for you to download and implement FREE today:
Credit Management reports use FACT03
Debtor Days Bundle use FACT02
Management Reports FACT01
If you are looking for a company to help you with your credit management function we would love to hear from you to see how we can help.
