The perfect question from the Construction Accord

“Who could have predicted the situation we currently find ourselves in with the country in lockdown and almost all construction closed for at least four weeks. Our sector is fortunate to have the Construction Accord which acts as a conduit between industry and Government. Let us know if you have a great idea about how to get the sector back on our feet.”

What a great question to ask.

Here’s one reply – but want to hear your ideas too. Submit them below.

“If the Govt were to provide loans to construction companies equal to the value of retentions held in trust, and allowed the construction companies to use that loan as working capital on good terms for interest and repayment, then the construction companies paid the retentions out to Subs… There would be a significant cash boost to all subcontractors and construction companies for minimal pain to the Govt. The only negative would be the argument that there is no retention money as a lever over subs for defect liability work. However, it has long been the case that this never made any difference to the outcome anyway. Far better than Grant Robertsons idea of releasing directors from personal liability if half the creditors agree.”