A recent survey conducted by Gleeds, a quantity surveying firm, has unveiled a concerning trend within the UK construction industry. With 95% of contractors or members of their supply chains having declined a tender in the last quarter, the industry is becoming increasingly risk-averse. The reasons are multifaceted, ranging from a lack of capacity to onerous contract conditions and unacceptable risk profiles.

One of the underlying issues that exacerbate this risk-averse behavior is the endemic problem of late payments. This ‘beggar thy neighbour approach’ to managing the supply chain has created a hostile environment where trust is eroded, and collaboration is stifled. The ripple effect of delayed payments not only affects contractors but also trickles down to suppliers, creating a chain reaction of financial instability.

In this complex landscape, Okappy offers a beacon of hope through a more collaborative approach. By fostering transparent communication and streamlined processes, Okappy can bridge the gap between contractors, councils, and housing associations. This platform enables real-time tracking of work, invoicing, and payments, reducing the friction that often leads to delays and misunderstandings.

However, implementing such a solution is not merely a matter of technology; it requires a cultural shift. The first-tier contractors and their clients, particularly in councils and housing associations, must embrace a mindset that values collaboration over competition. This change is not just about improving payment practices but about building relationships that are resilient, transparent, and mutually beneficial.

The survey also highlighted a disconnect between the construction industry and government policy, with almost two-thirds of respondents feeling that the industry has little or no influence on government decisions. This lack of faith in the government’s ability to improve market conditions is a call to action. There is a need for focused efforts on addressing labour shortages, incentivizing land purchases and development, and most importantly, improving payment practices.

Graham Harle, Gleeds’ chief executive, rightly points out that the construction industry must act to strengthen the sector from within. Embracing digital technologies like Okappy can boost productivity and attract a more diverse workforce. But beyond technology, there must be a concerted effort to foster collaboration and knowledge transfer partnerships.

The challenges facing the UK construction industry are complex, but they are not insurmountable. By moving away from the ‘beggar thy neighbour approach’ and embracing collaboration, transparency, and innovation, we can build a future where risk is managed, and opportunities are seized. Okappy stands ready to be a part of this transformative journey, but it requires all stakeholders to come together and commit to a more collaborative and empathetic way of doing business.