The Construction Industry is like the cherry on the cake for business owners, it's the one they all want to crack because it's seen as a way to make lots of money.
In reality... who on earth would want to venture in to that cut throat world!
The big boys won't even entice you in... they'll slam the door in your face until you offer to work for next to nothing or most likely for free.
IF you're lucky enough to get through the door you're faced with costs in obtaining numerous accreditations, certificates, policies and training even before you start to fill in the endless paperwork you need to have a shot at bidding for a job.
After a week of filling in paperwork and losing the will to live you'll be presented with a Contract that no doubt means they own you, your business and your wife and kids (maybe that's not so bad...). Not to mention that if there is a delay on site for whatever reason, you'll have to pay THEM money! Oh and you can only send a bill when THEY say so and you're bound by THEIR payment terms!
However, you want this job so you sign and return the contract. Did they mention they wanted the job done yesterday? Of course not but that's a given - They own you now!
Remembering the clause in the contract regarding you owing them money if it's delayed... you jump and you jump high, every waking moment until the job is complete.
They've requested so many changes along the way you're doing a completely different job than what you bid for (in fact you were probably doing their job for them!), but you'll worry about that later when you send the invoice in because Jim the site manager said he'd pay for anything that needs doing and not to hassle him for paperwork... he's too busy!
So the invoices are submitted... and rejected. Submitted... and rejected. Submitted.... and rejected. They have to be worded exactly how they say so, submitted on a certain day, to a certain person or uploaded on to their portal (yes - you're now doing their admin too). Hey presto, they've been awarded an extra 30 days credit!
Finally you receive a remittance... What on earth are all these deductions???
20% CIS deduction
Reality hits home... this job cost you more than you bid :(
If you really do want to venture in to the Construction Industry then please do your research... read the Contracts, weigh up the pros and cons, do not be bullied and ask for their payment processes before you even start!
The statistics say it all...
There are 314,590 companies operating in the Construction Industry in Great Britain, an increase of 6.2% on the previous year... insolvency within the Construction Industry has risen by 3.4% equating to 2,792 insolvent firms (data taken from www.ons.gov.uk)
Look after yourselves!!
These Blogs are my own personal opinion and are only based on my own experiences, please feel free to comment your agreement or disagreement but I take no responsibility for actions taken as a result of my blogs. I also apologise in advance if you find the content offensive or inappropriate.