Rogers & Norton Builders Tea
16th Jan 2018
It seemed highly pertinent that our Rogers & Norton Builders Tea Construction Seminar and Networking event was held on the day that Carillion Construction announced that it was going into liquidation.
Carillion employs 20,000 people in the UK and reportedly has, debts of about £1.5bn. This gave us a myriad of hot topics to talk about, as they had spent £952 million with local suppliers in 2016 and used an extensive network of small firms. The supply chain which is going to bear a massive loss – there could be a large number of firms that will experience substantial financial distress. The Government has also stated that support for small firms subcontracting to Carillion will only last for two days.
It has been reported that up to 30,000 firms are owed money by Carillion. Many contractors may already be hard pressed, as the company had already extended their payment times from 80 days up to 120, with the intention of easing the cash flow problems. The unpaid bills may well go back several months
I highlighted the need for cash to flow in the industry and to ensure Payment Notices are issued correctly and on time. We looked at the recent cases relating to Pay Less Notices, and that these must be validly issued, reminding the delegated that in the absence of a Pay Less Notice payment is due. In light of Carillion, I stressed the importance of taking early steps to recover monies and enforcing Retention of Title claims to recover materials from site
In addition, we looked at financial claims for delay, Liquidated and Ascertained Damages Claims, Extension of Time applications, and Duty of Care following Montgomery v Lanarkshire Health Board.
I was delighted that Liz Hill from Lovewell Blake accepted my invitation to talk about VAT issues affecting the industry – this proved both popular and very helpful to those who attended.
The next Builders Tea event is being held on Monday 23rd April, if you wish to attend, please let me know.