The latest research from industry insurance specialist ECIC has revealed that late payment is having a drastic impact on the decisions of roofing businesses, with 27% of firms reporting it as a problem.
The 2016 survey asked 200 roofers, electricians, plumbers, heating and ventilation engineers, joiners, plasterers, decorators and general builders from all parts of the UK about their prospects for the coming year.
One in ten of those surveyed said they struggle to pay for supplies because their cashflow has been impacted by late payment and 12% have to fund specific resource just to chase outstanding payments.
However, as a result of the high demand for skilled contractors firms are taking control of the issue where they can, with more than a quarter (27%) of the roofers surveyed saying they turn work away from known late payers.
Commenting on the research John Flaherty, business development executive for ECIC, said: “It’s shocking that despite Government promises of support, late payment is still such an issue for roofers – to the extent that it affects their ability to buy supplies. This can have a serious knock-on effect for their business, delaying projects and damaging customer relationships.
“The good news is that where they can, roofers are being selective about who they will work with, based on the customer’s previous payment performance. By taking a firm stand in this way, it sends a clear message that late payment won’t be tolerated.”
The findings of the survey follow the introduction of the Enterprise Act in May bringing changes to the speed of commercial insurance claims payments.
Mr Flaherty continued: “As part of the Enterprise Act introduced in May, unnecessary delays in claims payments should be a thing of the past, giving roofers some much needed certainty when they need to make a claim. It always helps to work with an insurer or broker who knows your business sector inside out and has a proven track record for claims. Biggest is not always best and we would urge contractors and tradespeople to seek evidence of claims service before placing cover.”
