Tier one contractors reveal latest research

Tier one contractors in the UK have revealed research that proves they are spending about 64 pence more on each pound that is earned with the UK. The research has been published to challenge the government’s plans to spend more on smaller suppliers which would mean bypassing tier one contractors.

The UK Contractors Group took a survey of its tier one members this past October and discovered that for every pound spent on a subcontracted project about 64 pence goes directly to SMEs. The group will send along the results of their research to several associated government ministers including construction minister Michael Fallon and Cabinet Office minister Francis Maude.

About half of the members included in the survey stated that they subcontract as high as 70 pence per each pound spent with the SMEs they work with and the report found that an additional 18 members offered support to 30,000 SME supply chains via contracts for specialist services, material supplies, and on-site labour.

Director of the UKCG, Stephen Ratcliffe, stated that the data will prove that construction projects are an important partnership that has been formed by SMEs and their main contractors. Most of the money that goes to main contractors does not actually stay in their own budgets but instead gets passed onto the SME supply chains.

Ratcliffe added that the government needs to hear this important information as they work on creating new opportunities for SMEs. He added that it is important that they understand the vital role that main contractors play in offering new opportunities to SMEs that are involved in the construction sector.