{"id":120877,"date":"2023-02-07T13:59:15","date_gmt":"2023-02-07T13:59:15","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=120877"},"modified":"2023-02-07T13:59:15","modified_gmt":"2023-02-07T13:59:15","slug":"scottish-construction-industry-struggling-late-payments-cashflow-issues","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/scottish-construction-industry-struggling-late-payments-cashflow-issues\/120877\/","title":{"rendered":"Scottish construction industry still struggling with late payments and cashflow issues"},"content":{"rendered":"<h2>A survey by the\u00a0<a href=\"https:\/\/cicvforum.co.uk\/wp-content\/uploads\/2023\/02\/CICV-Payment-Cashflow-survey-300123.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Construction Industry Collective Voice (CICV)<\/a>\u00a0has found that the Scottish construction industry is still blighted by serious payment and cashflow issues<\/h2>\n<p>The Scottish construction industry is still struggling with late payments, outstanding retentions and unexpected charges, according to 69% of respondents.<\/p>\n<p>The survey on <a href=\"https:\/\/www.pbctoday.co.uk\/news\/featured\/how-to-tackle-payment-problems-in-construction\/120565\/\" target=\"_blank\" rel=\"noopener noreferrer\">cashflow and payments<\/a> was undertaken to help an accurate picture of the current financial landscape in the Scottish construction industry.<\/p>\n<p>Answered by those businesses which operate both as main and sub-contractors in the public and private sectors, some 68% of respondents said their payment terms were altered negatively, with 60% claiming adjustments to payments were made with little or no explanation.<\/p>\n<p>And 69% of those surveyed said the time and cost of chasing outstanding moneys was their most significant problem when it came to payment.<\/p>\n<h3>Key findings on the Scottish construction industry included:<\/h3>\n<ul>\n<li>52% reporting that they still have problems getting retentions paid<\/li>\n<li>44% revealing that they had been hit with unexpected charges<\/li>\n<li>40% disclosing that they \u201calways or often\u201d had payments reduced<\/li>\n<li>30% saying payment delays have a \u201cmajor impact\u201d on their company.<\/li>\n<\/ul>\n<p>Some 50% of respondents said they required external assistance to deal with payment disputes, with 54% saying they had <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/almost-25-years-of-adjudication-and-many-contractors-still-unaware-of-rights\/113679\/\" target=\"_blank\" rel=\"noopener noreferrer\">referred a dispute to adjudication<\/a>.<\/p>\n<p>And 62% of those surveyed also said they were aware of project bank accounts, but only 17% had actually used them.<\/p>\n<p>Len Bunton, chair of the CICV\u2019s Pipeline &amp; Commercial sub-group, said: \u201cFrom these findings, it is clear \u2013 and also rather depressing \u2013 that cashflow and payment issues are still major problems in the construction industry in Scotland.<\/p>\n<p>\u201cIt is especially frustrating to see so many financial disputed still going to costly adjudication and so little take-up of solutions like project bank accounts and the <a href=\"https:\/\/www.rics.org\/uk\/products\/dispute-resolution-service\/conflict-avoidance-process\/\">Conflict Avoidance Process<\/a> \u2013 despite evidence that they do work and help to improve all-important cashflow.\u201d<\/p>\n<h3>Surveyees suggested standardisation and simplification as solutions<\/h3>\n<p>The survey also invited respondents to provide anecdotal evidence of cashflow and payment issues, along with suggestions of how to improve the current situation.<\/p>\n<p>One said: \u201cI\u2019d like to see less sub-contracting and more directly employed trades so there\u2019s a joined-up process and effectively one large purse with collective ownership. The minute we sub-contract we divide, and priorities, focus and responsibility aren\u2019t truly shared.\u201d<\/p>\n<p>Another told the poll: \u201cWe have problems with the public sector with too many authorisations that prolong and delay payment. A simplified process would help.\u201d<\/p>\n<p>A third added: \u201cMany years ago, main contractors had to show proof of payment to sub-contractors before they received their next payment. Implementing such a practice for all sub-contractors would hugely improve the payment process.\u201d<\/p>\n<p>While a fourth respondent said simply: \u201cEmployers need to be held accountable and measured against the agreed payment terms within the building contract.\u201d<\/p>\n<h3>A best practice guide is being developed by CICV to comabt issues found in the Scottish construction industry<\/h3>\n<p>The CICV is now devising a series of measures to help combat issues highlighted in the survey, including the imminent publication of a best practice guide. The collective is also planning an online webinar, offering contractors practical advice to help them avoid payment pitfalls observed in the Scottish construction industry.<\/p>\n<p>David MacDonald, a member of the CICV\u2019s Pipeline &amp; Commercial sub-group, added: \u201cThe many troubling issues highlighted by this survey simply reinforce the need for the industry to resolve matters before they escalate into disputes.<\/p>\n<p>\u201cThe best practice guide, to be published by the CICV shortly, is designed to be used to <a href=\"https:\/\/www.pbctoday.co.uk\/news\/featured\/construction-payment-delays-most-common-causes-revealed-in-new-analysis-of-8m-invoices\/113268\/\" target=\"_blank\" rel=\"noopener noreferrer\">eliminate poor commercial management and assist contractors<\/a> to be much more alert to potential problems and risks.<\/p>\n<p>\u201cThe planned webinar will also help contractors navigate the perilous waters of payment, which are clearly still littered with many difficulties.\u201d<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>A survey by the\u00a0Construction Industry Collective Voice (CICV)\u00a0has found that the Scottish construction industry is still blighted by serious payment and cashflow issues. <\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[853,676,908,283],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-120877","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-adjudication","8":"tag-construction","9":"tag-economy","10":"tag-finance"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Scottish construction industry still struggling with cashflow issues<\/title>\n<meta name=\"description\" content=\"The\u00a0Construction Industry Collective Voice\u00a0has found that the Scottish construction industry is still blighted by serious payment and cashflow issues\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/scottish-construction-industry-struggling-late-payments-cashflow-issues\/120877\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Scottish construction industry still struggling with late payments and cashflow issues\" \/>\n<meta property=\"og:description\" content=\"A survey by the\u00a0Construction Industry Collective Voice (CICV)\u00a0has found that the Scottish construction industry is still blighted by serious payment and cashflow issues\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/scottish-construction-industry-struggling-late-payments-cashflow-issues\/120877\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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