The construction industry has long been maligned for its poor payment practices. Many of the largest contractors are typically taking more than 60 days to pay upwards of 20% of their invoices, with average payment times often extending to 40 or 50 days.
In response, the Government has cracked down on the issue with the introduction of its prompt payment policy. This means that since 1st September this year, companies that do not pay 95% of their subcontractors within 60 days risk being barred from bidding for public projects.
- Topic:
- Construction
In this post, we’ll outline some key ways subcontractors can build ever stronger relationships with main contractors in the construction industry.
But first, here are five things subbies do that are guaranteed to send contractors running for the hills:
- Sending in an incomplete bid
- Sending a bid with errors and inaccurate data
- Submitting the bid after the deadline
- Going back to the contractor with extra charges
- Not responding at all to the contractor’s RFP
Sound familiar? If you recognise any of these happening at your organisation, you could be seriously damaging your chances of forming strong working relationships with contractors, subsequently hindering your chances of securing projects.
- Topic:
- Construction
There’s one thing that’s often overlooked by subbies when it comes to improving bid-winning performance.
We’re talking about internal tendering processes and procedures. Believe it or not, if they aren’t up to scratch, you could be missing out on a lot of new business.
Consider these questions:
- Do you (or your customers) worry about the accuracy of your pricing?
- Do you and your estimating and surveying teams spend a lot of time on mundane admin tasks?
- Do you find it difficult to get a clear view of project costs?
If you answered ‘yes’ to any of these, there’s a good chance the tips in this blog post will be valuable. Follow our action points, and you’ll be well on your way to running a well-oiled tendering process and pricing more jobs than ever before.
So, here are five common mistakes that subcontractors make when tendering for new business (and what to do to fix them).
- Topic:
- Construction
The construction sector has made significant progress on health and safety, but there is always more that can be done. Especially when you consider the UK HSE stats which serve to highlight how important it is to keep on top of health and safety training, compliance and reporting to ensure everything that can be done, is being done.
A key element of ensuring ongoing health and safety in construction is making sure that everyone has the right skills and awareness of risk at all times. This all comes back to training and education and although many construction firms have dedicated health and safety managers, HR also continues to have a vital part to play.
- Topic:
- Construction
After concerns about a significant change to how construction companies manage payments, the government has delayed implementation by one year.
The Domestic Reverse Charge (DRC) was due to be introduced on the 1 October 2019. A major change, it would have meant that VAT payments would need to be paid directly to HMRC (read more about what the Domestic Reverse Charge involves here).
It was designed to combat fraud, with an estimated £100m lost by HMRC each year because traders failed to pay VAT on goods.
- Topic:
- Construction
A major change to the way VAT is collected in the construction industry is on its way – and it will have a significant impact on cashflows and processes.
From 1 October 2020, contractors will not pay VAT on sales invoices from one supplier to another. Instead, the VAT will have to be paid directly to HMRC.
Known as the Domestic Reverse Charge (DRC) it has been designed to combat missing trader fraud. According to HMRC, the government is losing £100m of revenue through this practice. In effect, it means the trader deliberately fails to pay the VAT that it’s liable to pay for taxable goods made in the UK.
- Topic:
- Construction
Access Group will be speaking at industry show Digital Construction Week, 16 & 17 October 2019.
Appearing on the Tech Stage on day two, Andy Day will be sharing how software can save precious time in construction and release people from admin heavy tasks.
- Topic:
- Construction
With Generation Z entering the workplace it is time for companies to realise the benefits that new technology can bring.
This generation has never known a world without technology. Born between 1995 and 2010, they are used to technology that seamlessly integrates with their lives, accessing whatever they need ‘on demand’.
They can engage with highly complex software and ways of working, which is seen as ‘modern’ to a construction industry that is still adapting to the benefits and use of technology.
Changing to meet these expectations will allow the industry to attract the next generation into the workforce. However, this is not just about recruitment. Getting this right will improve businesses today.
- Topic:
- Construction
"ConQuest is just so flexible, it can be adapted, changed, the libraries can be amended, it gives me so much flexibility on all labour, plant, materials and adjustments. I have used a couple of other systems in the past and as far as I am concerned ConQuest is the bee’s knees", Melvin Sully, GA Sully & Sons.
How much time do you spend creating Bills of Quantity in Excel? Is updating spreadsheets with changes taking up valuable time?
ConQuest Estimating’s integrated system allows you to access everything you need in one place. All your data is stored and updated through a single system and your estimating processes work seamlessly together: you can access comprehensive libraries of items including your own items and bespoke build ups, update projects quickly, manage and compare subcontractor quotes, take-off measurements and produce reports.
Learn more about how ConQuest customers save time and improve the accuracy and quality of their data by taking advantage of ConQuest’s powerful integrated software.
- Topic:
- Construction
“I save around 3-4 days per tender by using Online Enquiries. If we price 150 tenders per year, this will give approximately 500 man-days longer for our supply chain to price the enquiry.” David Barbour, Estimating Manager, akp Scotland.
ConQuest’s cloud-based Online Enquiries system streamlines the way you send enquiries. In just a few clicks, multiple trade bills and enquiry letters are created for a whole project, no matter the size.
The system, part of Conquest Estimating, allows you to easily create subcontractor/supplier document packages, store them on the cloud and send notification emails. Live tracking let’s you see which subcontractors and suppliers have viewed and downloaded the information, saving you time chasing quotes.
Read how Online Enquiries has helped other estimators improve the efficiency of their enquiry process, increase their capacity to process tenders and improved their communication with their subcontractors.
- Topic:
- Construction
