In this article the experts at TenderSpace look at why contractors must manage their risks in an increasingly uncertain market.
News that 40,000 construction firms are operating on the brink of collapse is a wake-up call for contractors who urgently need to reduce their risk of exposure and increase their visibility to potential clients in a rapidly changing and disrupted supply chain.
The recent ‘Red Flag Alert’ research report for Q2 2017 from insolvency specialist Begbies Traynor1 shows that 40,495 construction companies are operating in a state of ‘significant’ financial distress. This news, coupled with significant supply chain disruption and financial uncertainty, means contractors are potentially facing a perfect storm.
Contractors face a tough task. The terrible tragedy at Grenfell Tower highlighted just how difficult and critical it is for construction companies and their clients to have oversight of their increasingly long and disparate supply chains2. For those 40,000 construction companies highlighted in the report, action needs to be taken.
“Now’s the time for those contractors operating on the edge to act before it’s too late,” explains David Stapleton, CEO and Founder of TenderSpace, the online collaboration platform for the construction industry.
“For small and medium-sized enterprises (SMEs) in particular, one small hiccup in their supply chain could be extremely costly. Increased diligence and ensuring your business isn’t dependent on just one large client or supplier must be one of your top priorities. Checking on a client’s ability to pay their bills and ensuring payment terms are met must also be in the plan.”
TenderSpace and its comprehensive suite of due diligence tools allows clients to keep track of potential issues and receive alerts when there’s a significant change in the financial standing of an organisation.
The Project Hub allows for visibility of projects and potential delays and variances, allowing those responsible to be alert to possible adverse issues before they become a major problem. Up-to-date information provides an audit trail for all involved, allowing people to make proactive, rather than reactive decisions.
“Contactors also need to be searching for new opportunities and technology will help them achieve this,” continues David.
“TenderSpace’s collaborative platform has never been so relevant and it offers everybody in the construction supply chain the chance to grow, manage and protect their businesses and their projects.”