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CONSTRUCTION INDUSTRY NEWS
Payment issues plague Scotland
A survey by the Construction Industry Collective Voice (CICV) in Scotland points to the persistent and significant payment challenges contractors face: 80% of contractors experience delays or adjustments when receiving final payments; 63% of contractors face unexplained payment reductions; and 43% of contractors have had to write off disputed sums. Ian Honeyman, Co-chair of CICV’s Procurement, Quality and Pipeline Group, said: “These findings underscore the severe impact that delayed payments, or even worse, non-payments, have on the viability of
businesses, compounded by the strain from reduced credit facilities and retained funds. “Despite well-publicised
commitments from Government and industry to address unfair and damaging payment practices in the UK and Scottish construction sectors, aimed at improving cash flow along the supply chain, we continue to observe poor behaviour in this area. Without substantial changes in these practices, attaining a financially stable and sustainable construction sector remains challenging.”
Homes England has launched an awareness campaign to help small and medium-sized (SME) house builders access funding and expert support. The ‘We Fund It. You Build It’ campaign connects SME builders with financial support, such as the UK Government’s Levelling Up Home Building Fund, which was set up to kickstart SME house builder projects with development loans from £250,000 to more than £10 million. Gary Middleton, Assistant Director of Development Finance at Homes England, said: “We know how difficult it can be for SME developers to bring their projects to fruition, and that access to finance can be one of the biggest blockers they face.” The FMB’s latest House Builder survey showed that 42% of members consider access to finance a significant obstacle. Over the coming months, Homes England will be sharing stories from developers that have successfully accessed funding. New campaign to connect SME house builders with funding
Find out on page 13 how member Marun Construction Ltd manages late payments.
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