Mike Antis, vice president client services, Oracle Construction & Engineering, argues that the Prompt Payment Code needs technological back up to be completely effective.
In any other aspect of life, money and cash flow is a priority. It enables us to do what we want to do and it’s the lifeblood of a business. However, for the construction industry, payments management is often given scant regard, with many organisations still reliant on using paper-based, heavily manual processes – and the urgency to improve the process through technology is often lacking.
When you consider that GDP from the construction industry in the UK increased to £28,576m in the first quarter of 2019 and that there were 2.4 million construction industry jobs in UK in Q3 2018, it really highlights how important the industry is to the prosperity of the UK.
While these figures are encouraging, the construction industry faces a long-standing and serious challenge in the health of its project supply chains. This health can be viewed in a number of ways, from a high-level look at the strength of the relationship between supplier and owner and/or main contractor down to a more specific look at financial health of individual entities in the supply chain, many of whom are small businesses.