Stone Federation calls on all levels of construction to pay their bills
Stone Federation Great Britain has written an open letter to the construction sector asking all tiers to pay their bills.
The letter follows a member survey about the effects of the Covid-19 pandemic. The information gathered is being fed into the Construction Leadership Council, of which the Federation is part, and through that to government.
One of the main concerns raised by Stone Federation members was the lack of cash flow in the industry as some Tier One contractors leave invoices unpaid and hold off placing new orders.
The letter itself does not mention any particular tier, but calls on all companies to share the risk and ensure prompt payment throughout the supply chain.
The letter, signed by Chief Executive Jane Buxey, says: "By the industry making a collective decision to clear outstanding invoices, the sector as a whole will be in a stronger position. Stone Federation is appealing to all tiers of the construction sector to do the right thing when it comes to paying your suppliers, engaging with your customers, and keeping a healthy cash flow throughout the industry."
The whole letter is below. It is headed: An Appeal to the Construction Industry
The construction sector, along with the nation as a whole, finds itself trying to chart a course through unprecedented waters. Now, more than ever, we need to come together as an industry to ensure that we emerge from this experience as strong as possible.
We are stronger together. There is incredible power in collaboration. Beyond just rhetoric, partnership and shared endeavour have the potential to position the natural stone sector, as a part of the wider construction industry, for a strong exit from this lockdown period. There is risk, there is uncertainty, but when each company carries its share, the whole industry will be in a stronger position.
Now is the time to encourage prompt payment throughout the supply chain, and to urge contractors to continue to engage with suppliers and to place orders. Part of working together is ensuring that cash flow is kept consistent throughout the supply chain. This requires clients to pay contractors who in turn pay suppliers, enabling them to pay their own suppliers and service providers.
By the industry making a collective decision to clear outstanding invoices, the sector as a whole will be in a stronger position. Stone Federation is appealing to all tiers of the construction sector to do the right thing when it comes to paying your suppliers, engaging with your customers, and keeping a healthy cash flow throughout the industry.
It has been incredibly encouraging to see so many examples of the stone industry supporting our NHS, many of our members have donated PPE, raised funds, donated time, building materials and expertise. Let’s use these wonderful examples of collective responsibility and apply it to how we deal with one another in the construction sector. Let’s stand together and emerge as an industry, strengthened in our unity to face the challenges ahead.
Stone Federation Great Britain