If contractors thought their margins were tight before, they’re about to get worse. As the Brexit deadline looms and the governments are no closer to a deal, companies are being warned that they should prepare for the worst. But what does this “worst” look like and what will be the direct impacts on profits? Supply…
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While a great deal of noise has been made about retentions and late payments in recent months, it seems not a lot has changed. Despite promises to the contrary, subcontractors are still feeling the pressure of balancing cash flows. With the biggest main contractors reporting slim to no profits the chances of them making good…
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As Carillion has shown, posting large profits isn’t necessarily the best measure of success. Just months after doing just that, they closed their doors, the impact of which is still being felt in the industry. So if profits or even revenues aren’t the best measure of success, what is? What will give clients and subcontractors…
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The construction industry has taken a couple of hard knocks this year and while in some sectors prospects are looking up with increased output and funding becoming available for major infrastructure projects, contractors are not nearly out of the woods. With the recent report on the top 100 contractors reflecting poor profits it is clear…
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While the news carries reports of continued failure of Governments on both sides to reach agreement terms for Brexit, the deadline continues to creep closer. In just over 7 months, with or without an agreement in place, Britain will no longer be part of the EU. And exactly what this will look like in business…
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When considered, the construction industry is firmly entrenched in very traditional models of leadership. Ones that often take a very hierarchical and supervisory approach to managing teams. Communication is often a one way street with instructions being issued that need to be followed rather than discussion being encouraged. However, it’s becoming abundantly clear, given the…
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London is soon to follow in the footsteps of several other major cities. TfL has announced its plan to provide commuters with WiFi connectivity on the London Underground from 2019. It’s great news for commuters but making the business case work for contractors is going to be a little harder. Various attempts have been made…
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For the past few years may local councils have found themselves under pressure to the point where budget cuts and other austerity measures have been implemented to try reduce budget deficits. While financially this may seem to be the most prudent course of action, it is not without implications. The demand for infrastructure and related…
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Despite a recent increase in investment and awarding of tenders, infrastructure output in general is still not at the level that it could or should be according to industry experts. The Essential Infrastructure Report by Scape identified that in the 20 year period between 1997 and 2017 construction output on UK infrastructure and public construction…
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The recent National Infrastructure Commission report highlighted several issues in the industry. Amongst other things that productivity in terms of the development of infrastructure is below the national average in almost every major city in the UK. To address this the NIC’s recommendation was to implement 5 year budget cycles covering smart technology implementation, routine…
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The issue of retentions and late payments has been in the spotlight more recently following the Carrillion collapse. But the reality is that this practice has been ongoing for years and it’s having a major impact on SME’s who make up an important sector of the construction industry. The tough current economic times are making…
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On 5 July, business and energy secretary Greg Clark, announced a £420 million construction sector deal promising to revolutionize the industry. It’s an ambitious plan that aims to deliver 1.5 million homes by 2022 as well as supporting infrastructure, and to do this in a way that is time and cost efficient, and green. But…
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