Wise Up Wednesday: Subcontractors Write Off £2.8 Billion A Year!
According to a new report by Bibby Financial Services, Subcontractors are writing-off a staggering £2.8 Billion in bad debts every year as non-payment continues to blight construction.
It’s not surprising therefore to see how badly the whole process of actually getting paid is managed.
If the money isn’t flowing into the business to satisfy creditors and suppliers when it’s needed, then trouble beckons. And, in such circumstances, even profitable businesses can go bust.
Some of the main reasons why a successful business can run into trouble are as follows:
• Focusing on profit instead of cash flow
• Paying suppliers too quickly
• Poor control of the application/payment process
• Failing to understand the payment process
• Not submitting/agreeing variations
• Extending time on-site without claiming additional costs
• Extending credit to the wrong customers
What is equally surprising is that responsibility for getting paid is often laid at just one person’s door, and that this person’s actions are critical to the company’s abundance or, more likely, lack of funds.
In reality, ‘cash flow’ is the responsibility of every individual in the organisation, and success or failure starts from day one.
In other words, all the various functions need to be geared from the outset towards ‘good cash flow’. This starts with the tendering to order process, where every attempt should be made to agree sensible payment terms and to reject onerous terms.
And your team need to understand exactly how the payment process works and escalate any non-payment immediately. Good cash flow should be the job of everyone in the firm and you don’t want to pay the ultimate price of bad cash flow!
Want To Know More?
Come and discover the Secret Keys To Minimise Risk and Maximise Profit, that we have been putting into practice on behalf of Specialist Subcontractors for the last 28 years.
And they’re are being revealed at our July events;
“Understand Your Contract to Minimise Risk and Maximise Profit”
“Introduction To Contractual Awareness and Using JCT Subcontracts”
WHEN/WHERE IS IT? The dates and fast access venues are as follows;
03 July – Birchwood Park and Country Club – Dartford Close to M25 and M20
04 July – Brooklands Hotel – Weybridge Close to M25, M3 and A3
17 July – The Jurys Inn – Watford Close to M1 and M25
18 July – Marriott Hotel – Waltham Abbey Close to M25, M11 and A10
Here’s what your fellow Subcontractors said about our last event;
“Easily digestible information delivered in an interesting and easy to understand format”
“Very detailed and informative”
“Very informative and well delivered”
“We were struggling to get paid; not any longer!”
Session 1 – Contract Formation Session 2 – Introduction to JCT Contracts and Construction Act Session 3 – Time, Notices and Delay and Disruption Session 4 – Instructions, Variations and Maximising Return Session 5 – Getting Paid On Time and the Right Amount Session 6 – Resolving Conflicts and Disputes Session 7 – Putting It All Together
WHO SHOULD ATTEND?
Our events are exclusively for Specialist Contractors so you are in the friendly company of other Specialist Contractors, and everything is designed to provide a broad appeal for all Specialist Contractors staff including;
Estimators, Contracts Managers; Project Managers; Commercial Managers, Quantity Surveyors, Credit Controllers and Directors
WHAT WILL WE GET OUT OF IT?
The Secrets To Getting Paid and Minimising Risk and Maximising Profit! Specialist Contractors don’t get paid because they don’t understand the contract or don’t apply it when they should. We will reveal all you need to know to enable you to understand the fundamentals of those subcontracts, and how to get paid.
WHAT DOES IT COST?
The value of this whole days training is £350 + VAT, however, you can get your Early Bird booking discount and enjoy the reduced rates as follows;
10% discount when you book one place
20 % discount when you book 2 or more places
And if you are a member and StreetwiseSubbie Buddy (or join us now), you are eligible for even more heavily discounted preferential rates.
All rates are subject to VAT
Booking couldn’t be simpler, just contact me directly on 01773 712116 or email me at firstname.lastname@example.org to confirm your places.
But hurry our last round of seminars sold out very quickly.
Thanks and best regards
P.S. Please remember that we are here to provide solutions exclusively for Subcontractors. If you want the Secret Keys To Getting Paid Properly or have a payment problem, not sure what to do or just want a second opinion, then we are here for you. Please give us a call on 01773 712116, or email email@example.com today.