The construction industry is complex and so highly regulated that it can be difficult to juggle all aspects of running a successful construction business.
Construction commercial support deals with the detail that contractors and subcontractors don’t always have the time or resources to address.
“Subport have been working with us for the last 10 months now, originally employed to provide commercial support in one of our divisional businesses on a key project.
The project has been a success with new processes and procedures implemented benefiting the business and future projects. Other parts of the group use Subport for ad hoc commercial advice, we find that they are very responsive and easy to deal with.
The relationship is due to continue on future projects and their input will continue to bring great benefit to both the projects and businesses they work within.”
Keith Soulsby – Operations Director – Northern Bear PLC (Family of Construction Businesses)
Commercial support for the construction industry
SubPort is a specialist consultancy providing commercial support for the construction industry through quantity surveying and financial advice. We work mainly with subcontractors, helping them to navigate the commercial challenges of the construction supply chain.
Commercial subcontractor support for the construction industry is vital for companies that don’t have the inhouse resources to focus on profitability and winning lucrative new business.
Particularly for subcontractors, the expertise and time-served experience of the SubPort team in quantity surveying and finance protects their interests and allows them to get on with what they do best.
Cost management is critical for project success
Cost management is a major influence on the success of any construction company.
Cashflow forecasting gives subcontractors full visibility on the money going in and out of the business.
With a handle on projected income and expenses, subcontractors have a clear understanding of the position of the company for the next few months. This tells them if there is enough cash in the business to successfully deliver projects they might be interested in.
On specific projects, cost management begins at the point of tender and continues throughout the works. Pre-contract, SubPort help subcontractors by estimating and producing a Bill of Quantities and conducting a contract review, prior to signing, to ensure the project will be profitable. A cost and value report (CVRs) on financial performance of each project is essential to measure costs against value and budget.
A common cost management issue is recovering retentions. Having a professional construction consultancy like SubPort involved in chasing retentions can sometimes be enough to get the money paid. If not, we act on the subcontractor’s behalf until the full amount is received.
Commercial help for subcontractors
As well as cost management, SubPort provide a range of commercial services for contractors and subcontractors. Some of these are:
Tendering and pricing – we conduct PPQs (pre-qualification questionnaires) to ascertain the suitability of the contractor or subcontractor for a project. We review all elements of a contract, not just the costings, to measure the feasibility of the contract and potential risks.
Commercial project management – SubPort look after commercial administration, changes to scope of works, final account settlements and disputes, and represent clients at meetings if required.
Post contract lessons learnt review – we review projects to evaluate all lessons learnt. This prevents repeating mistakes and highlights practices that can be taken forward to other projects.
Business health checks - these evaluate the financial position of the company to enable the subcontractor to work towards agreed financial targets.