From the organisers of the Natural Stone Show

 

 

 
Market Intelligence

Main contractors are stealing your profits, says Streetwise Subbie
, By Eric Bignell

Most main contractors in the UK are so reliant on cash management for their profits that they are underpaying subbies deliberately as the only way they can make money. "They steal your profits so that they make theirs," says Barry Ashmore, whose Streetwise Subbie organisation helps subcontractors fight back.

Barry's comments are in response to the Government's Department for Business Innovation & Skills publication of Trade Credit in the UK Construction Industry this month (July) (click here to download the report). 

The report is subtitled: 'An Empirical Analysis of Construction Contractor Financial Positioning and Performance'.

Barry Ashmore says the report makes it clear that main contractors are stealing from their subbies. "Of course it doesn't use the word 'steal' but it does say: 'As part of a relatively under-capitalised industry, construction firms are highly dependant upon sustained access to trade credit...'. 'Trade Credit'. What that means is your money!

"Now even some of the smaller contractors, who you thought you could trust, are taking a leaf out of the big boy's book and screwing their sub-contractors."

"I'm sick and tired of seeing good hard working specialist contractors… suffering at the hands of the non-paying, arrogant, bully boy contractors."

Streetwise Subbie is campaigning for the widespread adoption of its Fair Treatment Charter. The Charter was given formal recognition by MPs following the All Party Inquiry report released on Friday 12 July (read more…).

The problems Streetwise Subbie and its Charter address include:

  • Underpayment without reason, pay when paid and if certified
  • Spurious contra charges with no prior notice
  • Unpaid invoices in excess of six months
  • Contractors who completely ignore you, even after repeated threats of legal action
  • Even large contractors who used to pay on time hold onto payments until you chase them
  • Contractors use you to bankroll the contract,then screw you to maintain their margins
  • Contractors that are in adversarial mode from day one

"These are actual situations that we are helping specialist contractors to resolve on a daily basis," says Barry.

If you could do with the help of Streetwise Subbie, click on the website address below and take a look at what the organisation has to offer.