‘Unscrupulous contractors’ putting subbies at risk – survey
7th November 2017

‘Underhand and unscrupulous’ tactics by construction main contractors are putting specialist subcontractors’ businesses at risk by not paying for work simply to increase profits, according to a research published this week.

As many as 93% of Specialist Contractors experience disputes regularly or occasionally, often leading to serious financial problems or even threat of closure, through payments being withheld for ‘spurious’ reasons, the survey by StreetwiseSubbie.com has revealed.

Even on public sector contracts where payment should be made within 30 days, 47% of those surveyed said that they were not in a position to challenge payment terms that are longer than that time. Many respondents expressed concerns along the lines of ‘a new breed of commercially aggressive quantity surveyors, who are motivated to maximise profit and seemingly on a bonus to claw back cash’.

The figures were published as the organisation announced a series of one-day Contractual Training Events across the UK aimed at giving specialist contractors the knowledge and skills to manage contracts effectively and challenge main contractors when they ‘ride roughshod’ over the payment process.

Barry Ashmore, managing director of organisers StreetwiseSubbie said; “At a time when main contractors are trying every way possible to ensure they maximise profits at the expense of the Subbie, it is vital that Specialist Contractors understand exactly what they are agreeing to when they sign a contract. It’s also important to realise that the contract is an important working tool and not something to be hidden away in a drawer.”

“Specialist Contractors often end up at the mercy of the contractor simply because they don’t understand the contract or do not apply it when they should. This dedicated training will help delegates to understand the fundamentals of those subcontracts and give them more confidence when dealing with contractual matters or challenging payment issues.

“Many specialist contractors fall into the same traps that unreasonable and unscrupulous main contractors set for them and are left carrying the can when it all goes wrong. This can cost them thousands, sometimes hundreds of thousands of pounds! They can start to fight back by improving the way they use and manage the contractual process.”

StreetwiseSubbie.com/survey