Industry Challenges

Cian started by laying out the structure of the construction industry, highlighting the dependency on main contractors and the ripple effects of financial strains at this level. He discussed the significant impact of liquidated damages, labor shortages, and the increased cost of financing which are jeopardizing cash flows and leading to business closures.

Impact of COVID-19

During the interview, Cian pointed out that policies introduced during COVID-19, although meant to stimulate the industry, have inadvertently led to a mini boom that’s putting additional pressure on resources. This, combined with fixed-price contracts and the astronomical rise in material costs, has created a perfect storm.

Legal and Risk Management

The conversation also touched upon a case study involving a cladding fire, which highlighted the broader issues of supply chain management and risk. Cian emphasized the need for precise specifications and stringent compliance to prevent such disasters.

Conclusion

The challenges are daunting, but with expert guidance and strategic planning, Cian believes that recovery and stability are within reach. Quantum Contract Solutions remains at the forefront, offering innovative contract solutions to protect businesses from common pitfalls and enhance profitability.

Read the full Sky News interview and learn how we can help your business navigate these turbulent times.