FMB calls for reform following Carillion crisis
THE Federation of Master Builders is urging the government to transform how it works with construction after the Carillion crisis.
The group is asking for a more rigorous payment code so that larger companies hold reasonable and sustainable financial terms with smaller firms.
Phil Hodge, regional director for FMB’s southern region said: ‘Small businesses have historically been under huge pressure from larger clients as large clients assume they can insist on longer payment cycles.
‘This puts smaller firms under a huge amount of pressure financially.
‘When a large player like Carillion goes bust, it has an enormous impact on the SME sector.
We want the government to refocus on putting in a rigorous payment code and this structure needs to be maintained so that smaller firms get a share of the action.
‘The great thing about these smaller firms is that they feed back into the local community and are also a great advocate of apprenticeships.
‘We simply can’t afford to be without their flexibility’