Last week’s news on growth in the construction sector is refreshing after the recent global market turmoil. However, it may only be the calm before the storm (even with the current “90-day pause”). While the Office for National Statistics' (ONS) retrospective figures look promising, strong economic headwinds continue to persist (i.e., National Insurance contributions, inflation, regulation, planning, skill shortages, supply chain issues, slow adoption of technology etc., all to name just a few...!) and the sector is now trying to grapple with a new gust of tariffs. With construction firms already trying new ways to plug each leak and continue to navigate through this new storm (assuming the chop from COVID-19 was receding), the need for collaboration between parties up and down the supply chain could not be greater.

My colleague, Gwilym Evans, and I recently attended Turnaround Management Association (TMA UK)'s event ‘Assessing Risk & Executing a successful turnaround or recovery in the Construction Industry’ where the key takeaway for us was just this: collaboration. This is because early discussions between employers, contractors and sub-contractors alike on both live and potential issues can allow for time. Time is critical as it can allow parties to review their current course and potentially free up cash-flow to relieve pressures, or allow for greater contingencies which can’t be deployed when it all becomes too late. Like a great vessel which takes time to adjust its course, the earlier a potential collision is spotted by those on watch, the sooner evasive actions can be initiated to avert costly consequences, such as delays, or project failures.

Having already battened down the hatches for the last ‘crisis’, awareness of the various options you can deploy to keep your project on track or even change the tide of cash-flow in your favour is more important than ever. If you would like to discuss possible options before having to resort to the lifeboats, please do get in touch with either of us.