Cash flow issues in the UK construction industry

Abstract

Problems surrounding cash flow are becoming more and more common for Main Contractors, Sub-Contractors and Suppliers within the construction industry throughout the UK. The purpose of this dissertation is to explore the key issues faced by construction surrounding cash flow, the problems which they cause and the effects they have. While a lot of research had been undertaken, this revealed numerous gaps which needed answering, in order to identify said gaps, further research methods were needed. The further research methods used were a quantitative methodology by sending out a descriptive type questionnaire. This was undertaken by the construction of several questions which were deemed important and would, providing results were received fill the gaps in question. The questions were then input into an online survey via survey monkey and sent out to a wide range of contacts which I have gathered over the years of which I had worked within the industry. Upon receiving the responses within 2-3 days, I then felt that I had enough responses to start analysing the data. This was done by the use of SSPS Analysis Software. This study highlighted the main problems surrounding cash flow and the causes were carefully researched and analysed. Results received revealed that the main cause to cash flow issues was late payment, however please bear in mind that this is only based upon the results received. The more respondents that answer the survey the more accurate results are likely to be.