There are so many different issues you can come across within the construction industry. Whether you’re dealing with large business or small local construction companies, you should ensure contingency plans are in place to protect yourself. Dealing with these situations can be hard and confusing.. That’s why we’re going to discuss ways of bouncing back from construction problems .

Construction problems

Construction problems are sometimes a nightmare to deal with let alone other effects it can have on people and business including:

  • Loss of money
  • Delays in work
  • Work not done to specified standard
  • Unwanted stress

We have come across so many different scenarios of how construction companies have affected people in the industry and customers using construction businesses.

Carillion Crisis

As many of you may know Carillion has collapsed due to being £900m in debt and is now having a dramatic effect on the construction industry. Carillion was not only a construction company itself but also worked as a project management service, therefor subcontracting a lot of the work to smaller localised construction businesses. A lot of subcontractors working with Carillion are now having to lay off staff to be able to make ends meet. Unfortunately, we are now witnessing a domino effect within the industry; there are a vast amount of businesses now going into liquidation. Carillion had around 20,000 workers and further 30,000 small business who are owed money.

The effect this is having on the industry is massive, not only is it affecting jobs and business but banks are now unwilling to lend these types of business any money in fear that they won’t see a return. Carillion has also affected hundreds of companies such as NHS services, schools and the army. It was one of the main contracting firms who had dealings with the government.

silhouettes of construction

How to overcome

The best way for the construction companies to deal with this crisis is to help each other out. CJ Coatings provides a range of different services that can help other construction companies such as food safe and hygiene coating, we also serve a variety of industries including, engineering and laboratories, retail and commercial also government and public sectors all of which have been affected by the Corillian collapse.

Now is the time for contractors to come together in helping with project management and outstanding projects. If you have a range of different construction services you may want to think about putting your business forward for any of the contracts that may be in need.

The good news out of the Carillion crisis is that taxpayers will not be affected and won’t be expected to bail out the company. The government is providing the specific funding for public services. Most local councils affected by Carillion have also put in contingency plans with other contractors to ensure their public services are not affected.

Cowboy builders

Employing any form of builder or contractor can be a difficult task, firstly you will want to try and get as many quotes as possible as this will be a good indication as to whether a builder or contractor is trying to rip you off. Some builders or contractors can be a delight to work with and often you will end up going back to them for more work however occasionally there are a few out there who intend to get your money and dash. They could leave you with unfinished work or work that’s not up to the standard you had agreed. We have had so many cases where a client has gone to a previous builder and either been ripped off for a small job, or the work was left in an awful state. This is one of the most painful things to hear as a reputable on site spraying coating company, they often give the construction industry a bad name and in some cases affect business.

Protect yourself

Sometimes when employing a builder, its hard to know if they’re trustworthy and reliable. But there are a few signs you can look out for to help when in this predicament. The best thing for businesses and individuals is to learn how to spot a cowboy builder early on.

Research

We always recommend when you’re considering a builder or contractor if possible to go off the recommendation of others. If they have had a good experience, the likely hood is you will too. If you don’t have any suggestions do your research. There are a number of sites available to you such as TrustPilot and CheckaTrade which are excellent websites providing genuine customer reviews.

Man Researching

Quotations

If you are finding that your contractor is unwilling to put their quote into writing your likely going to be ripped off, with no paperwork they have more opportunity to go over the estimated quote.

If you are a business, you should always have a contract agreement with any builder or contractor. You need to cover your business as much as possible, do not allow any tradesmen to start work without signing one.

Money

There are so many scenarios in life where you wouldn’t pay up front for a product or service, for example buying a car. Unless you have seen the vehicle yourself the likelihood of you parting with your money is minimal so you shouldn’t be expected to do it with a contractor or builder. If they are expecting the money upfront, you should ask why.

Ask your contractor or builder how they expect to be paid. If they can only be paid in cash, this is usually an indication they are not paying VAT. A respectable builder or contracting company will have multiple payment methods.

Sterling Notes

Summary

Unfortunately, you cant always predict what is going to happen in life or business. The Carillion crisis has vastly affected the construction industry and those who work in it. So many people have been let off due to lack of funds in smaller contractors, so nows the time for the many of us that provide similar services to lend a helping hand.

Cowboy builders are another example of a construction problem that you can overcome by following a few simple rules. Always research and make sure that any builder or contractor has good reviews. Don’t part with any money until you have a contract or quotation in writing.

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