In this article, a panel of experts assembled for a construction roundtable report to assess whether the spread of digital payment technology might finally accelerate the sector’s notoriously slow cashflow
Featuring on the construction roundtable were Tim Embley, group research and innovation director, Costain; David Hancock, construction director, Cabinet Office, Infrastructure and Projects Authority; Marie-Claude Hemming, director of operations, Civil Engineering Contractors Association; Coryn Martin, project director, Quintain; Angus McAlpine, head of partnerships, UK & Ireland, Payapps; Anthony Puma, senior business development manager, Payapps; Gareth Simm, chief executive, HE Simm Group; Stuart Talbot, commercial director, Michael J Lonsdale, and Carol Williams, Europe hub head of procurement, Laing O’Rourke.
Cashflow is among the most frequently cited issues in the industry
Cash, as they say, is king. The observation rings true in any industry, but especially in construction, where cashflow is among the most frequently cited issues when construction companies go to the wall. Many firms that enter into administration have orders on their books and the skills to deliver but get into difficulty because they must routinely meet costs upfront – and then wait months to receive balancing payments.
Poor payment practices are as old as the hills, and endemic in the industry. Solutions have been debated endlessly, yet late payment remains. Ambitious visions, such as the creation of project bank accounts – which put money from clients into trust for direct payment to subcontractors – promise to fix the slow trickle of cash through the supply chain. But, despite backing from Government, project bank accounts have failed to gain widespread traction.
Can digital payment systems help construction firms to manage their cashflow?
Could the increasing adoption of digital payment systems across the industry begin to chip away at the issue by modernising the way that paying and receiving firms manage their cashflow, thereby bringing greater transparency and certainty?
The construction roundtable report, chaired by Lem Bingley and sponsored by technology provider Payapps, assesses the role of tech in fixing an age-old conundrum.
The roundtable discussion focuses on the following:
- Reducing human error
- Reassuring smaller businesses
- Prompt-payment responsibility
- Clients’ role
- Technology trends
Download your free copy of the roundtable discussion to understand how businesses can modernise, and how digital solutions can provide greater transparency and removal of uncertainty.
