In a bid to support large-scale housing and regeneration, the Government had announced its National Infrastructure Delivery Plan in March this year. The plan includes the National Infrastructure Pipeline, ‘a forward looking assessment’ of planned infrastructure investment across the private and public sector. The focus will be on “levelling the playing field for suppliers and opening doors for both national and regional subcontractors”, which requires suppliers to be more transparent in advertising their subcontracting opportunities.
Bibby Financial Services’s Subcontracting Growth report revealed that just one in five subcontractors benefit from national infrastructure projects. Furthermore, almost a third added that additional support in relation to tendering for national contracts would be of great value to their business. The impact of late payments also proves to be the most concerning issue amongst subcontractors, with over one in four (27%) stating it will affect business over the next 12 months.
BFS’s study reveals that on average, subcontractors waited 42 days for payment from contractors. The data demonstrates continued poor payment practices within the construction industry and outlines the cashflow shortfalls that subcontractors have to accommodate for. It’s vital that these companies have continued cashflow that can support their work and as much of it currently relies on lengthy payment terms. Without the necessary funding procedures in place, these contracts become increasingly difficult to fulfil.
Supporting businesses by increasing cashflow
Bibby Financial Services is the UK’s leading independent invoice finance specialist and a trusted provider of funding solutions to 7,000 businesses. Their Construction Finance service can help subcontractors secure work by offering cash advances against outstanding invoices, meaning payment delays won’t affect day-to-day business operations.
BFS also assists with applications before they are certified and provide full, confidential credit control and sales ledger management services. Their website features a quick calculator to see how much potential funding is available to businesses.
Improving the procurement process
Constructionline can assist the plan’s drive for good supply chain practice by requiring suppliers to openly advertise sub-contracting opportunities.
We fully acknowledge the requirement to advertise opportunities openly and can assist you with many methods of advertisement through our advertising solution. This includes:
To find out more information on advertising work opportunities visit our advertising methodology page and for further information on BFS’ funding solutions and to read the Subcontracting Growth Report, click here.