Asked by: Lord Mawson (Crossbench - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of (1) the financial viability of running a small or medium-sized building company and (2) the main financial challenges of running a small or medium-sized building company.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
Construction is a cyclical industry, and the financial viability of firms can be affected by a range of factors, including the state of the market, commercial negotiations in relation to contracts, liabilities incurred, and the price of wages, products and materials. Small firms in the construction supply chain are also vulnerable to late or non-payment, which is why the Government has taken steps to improve payment reporting, and is committed to publishing a consultation on legislative measures to ensure prompt and fair payment.