Late payments and non payment of retentions
It is apparent to us here at Derek Gough that despite government legislation and initiatives, the problem of non and late payment persists.
According to National Specialist Contractors Council (NSCC), over £200m of late payments and retentions were off as bad debts by subcontractors over the past year. The survey, conducted of 719 firms with a combined turnover of £3bn, found that retentions and late payment accounted for 6.6% of subcontractors’ turnover.
Even allowing for some ‘own fault’ money here, to us this illustrates the importance of:
- Subcontractors not agreeing to retentions and instead offering insurance backed warranties – we are seeing an increase useage of this method, with main contractors now wishing to keep their key subcontractors happy and on board.
- Scrupulous keeping of good records during the course of the job. Signed confirmation of VO,s, signed record and daywork sheets and prompt notification of relevant events and effect on programme are key here.
- Relentless pursuance of main contractors surveying and accounts departments to ensure timely payment
- Immediate rectification of any defective work by the subcontractor.
- The use of rolling final accounts to iron out any discrepancies in the account as the job proceeds – again we have expertise in this field.
Read the complete article on Building.co.uk.
For more information on how the team at Derek Gough can help oversee the costing of your next building project, please contact us for further details at 01565 831 999.