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Coming out of lockdown – a few tips on how to capitalise on the opportunities within the construction trade
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• Contracts Finder lets you search for information on contracts worth over £10,000 with the government and its agencies –its FOC
• A total of 35 construction companies fell into administration in May, needless to say it’s imperative that you are not working for one at the time. Please see the thought provoking article from Construction News below.
• Below are some tips to help your business post lockdown, we hope you find them useful.
[/cs_text][/cs_element_column][cs_element_column _id=”9″ ][x_image type=”none” src=”https://www.thebusinessboard.co.uk/wp-content/uploads/2020/06/worker-1895691_1920.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_element_column][/cs_element_row][cs_element_row _id=”11″ ][cs_element_column _id=”12″ ][x_gap size=”30px”][cs_element_headline _id=”14″ ][cs_element_gap _id=”15″ ][cs_text]The availability of cash and credit lines is imperative in the current climate. Here are a few tips:
• Ensure your invoice finance facility makes funds available on submission of the application for payment – this can increase your cash availability by 30 to 40 days
• Ensure you instigate bad debt protection
• Even if you are cash rich an invoice finance facility will provide an instant audit on all your customers
• Ensure you have the maximum facility available to you
Or please call if you would like to talk through on 0118 338 1818.
[/cs_text][x_gap size=”30px”][/cs_element_column][/cs_element_row][cs_element_row _id=”18″ ][cs_element_column _id=”19″ ][cs_element_headline _id=”20″ ][x_gap size=”30px”][cs_text _order=”0″]The link below details the current opportunities and lists who has won specific contracts. It is worth having a continual review of this and understand who is getting the work and why:
Contracts finder is currently detailing over 100 government contracts with contact details. Please see a few tips below:
• Go small initially – Get to understand the process, Governmental organisations will need assurances of deliverability. This may involve accreditations but once done it will open up more opportunities.
• Regular Communication – Talk to contacts, follow up on work, build relationships – a simple polite email or Linkedin message can be a good instigation for initial discussion.
• Patience and persistence will pay off.
[/cs_text][x_gap size=”30px”][cs_element_headline _id=”24″ ][x_gap size=”30px”][cs_text _order=”0″]May’s total administrations is one of the highest so far this year and includes seven Irish-registered companies who carry out work in the UK. The total however is lower than the number recorded in February, when the industry was hit by 36 administrations, according to data provided by Creditsafe.
DRS Bond Management MD Chris Davies told Construction News that the spike in May insolvencies is “in line with expectations as money starts to run dry through supply chains”. He said: “As there was so little work done in April, there was little to collect in May. Even with furlough and other government schemes, those coming into lockdown with insufficient reserves were on borrowed time.”
Glasgow based housebuilder Central Building Contractors (CBC) was the largest company (by turnover) to enter administration last month. The £36m-turnover firm collapsed on 6 May due to cashflow issues that were amplified by the coronavirus lockdown. Its projects had been closed for five weeks prior to the collapse, in accordance with the Scottish Government’s lockdown restrictions. At the time of collapse, CBC director James McAlpine said the already difficult trading conditions were “greatly exacerbated by COVID-19”, leading to the group’s financial position becoming unsustainable. A statement from administrator KPMG, made at the time of its appointment, said the company had faced reduced margins, contract disputes and delays in the commencement of “a number of significant projects”, all of which were amplified by the lockdown.
Construction Partnership UK (CPUK) fell into administration on 4 May after the coronavirus crisis worsened its cashflow issues. The £23m-turnover firm had suffered a sharp decline in revenue in the six months to 31 March 2019, compared to the previous six months’ turnover of £43.5m. The firm had built up an order book for the year worth £98m, but owed creditors £13.7m within the year, while the firm had just £1.7m cash at bank and in hand.
NHS Nightingale Birmingham subcontractor Staffordshire-based J & P Carpentry and Joinery was sold in a pre-pack administration deal in May, in a move that saved 19 jobs. It also appeared on the list of administrations in May.
*Sources: Construction News, Creditsafe
If you are interested in finding out more about Construction Finance Solutions, email us at: firstname.lastname@example.org or call our office on 0118 338 1818.
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0118 338 1818
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