A holistic perspective on managing risk in the construction industry
With the construction industry well-positioned for further growth and development, what are the ways to mitigate risks to guarantee a sustainable, productive future?
Is Construction an unproductive industry?
The UK’s current Industrial Strategy is situated around improving sustainability, new business development and investments throughout the nation. Its aim is to strengthen supply chains across all businesses, to ensure long-term performance and productivity throughout each sector.
Combined, construction and FM enable a £600 billion GDP, showcasing that construction is one of the cornerstones of society. However, the industry is still trying to prove its productivity, particularly in lieu of the 2007 recession and in relation to current media attention regarding late or delayed payments. During the recession, late or delayed payment processes tripled severely which led to a 9% dip in productivity, affecting the supply chain and polarising the contractor and subcontractor divide.
Utilising software technology for transparency across your business
Although the construction industry is in a stronger position than it was nine years ago, there is still much to be done to consolidate its productivity which can be achieved by adopting robust, reliable technologies to streamline processes, such as payments for instance. The government is now looking at below tier-one payment processes to look at ways to improve the industry’s credibility and overall function.There are multiple ways to prevent late payments, all adhering to the Construction Act, although this doesn’t guarantee better visibility of managing the payment processes. The right technology is required to ensure financial granularity and efficient data management enabling clear traceability.
To mitigate risk, increase productivity and ensure a clear visibility of the payment process, Open ECX’s WebContractor system can create simple and bespoke solutions to help contractors manage the application for payment processes. The system allows a thorough view of current projects, including upcoming payments on a weekly basis, alongside fully integrating into major ERP systems.Digitalised application for payment solutions are straightforward and can aid the construction industry to sustain its growth and security. Companies can only win future work based on their past performance therefore it is vital for all contractors to invest in technology that ensures transparency and traceability which will benefit everyone within the supply chain.