Specialist contractors are being asked to lobby their newly-elected MPs to support effective measures on payment security in construction and protect investment in jobs and skills.
Professor Rudi Klein, the chief executive of the Specialist Engineering Contractors Group (SEC Group), writing in the inaugural issue of Spector magazine, said: “Unless (MPs) support legislation to enhance payment security for construction SMEs, the industry will continue on a downward spiral of declining investment in jobs and skills and of falling standards and quality.
Prof. Klein says new MPs should understand that SMEs create the bulk of the construction industry’s value and the survival of many of these companies depend on MPs supporting measures to ensure that they are paid.
Insolvencies in the construction industry are running at their highest rate since the recession. Over 30,000 SMEs in Carillion’s supply chain lost monies when Carillion collapsed in January 2018. Last year analysis by KPMG found a 55% surge in the number of building and construction sector insolvencies during Q3, with companies falling into administrations rising from 49 in Q2 to 76 in Q3 2019.
Prof. Klein concluded by saying: “If every specialist contractor in the UK was to email its MP, it would send a powerful message to the politicians that action on payment is now required.”