Account
Browse

Coronavirus action plan for the Construction Businesses

Coronavirus action plan for the Construction Businesses

Coronavirus action plan for the Construction Businesses

Posted: 18/03/2020

"Our Contract has been postponed"

Many businesses may face cash flow problem with the current situation with Coronavirus, due to delayed contracts, suspended orders, job cancellations and un-finished contracts.

Construction industry is especially at risk, due to its nature of work, that is usually at another premises, working on sites and in other people' houses.

I want to share an action plan, that may help businesses to prepare now and take steps to avoid cash flow problems:

1. Assess fixed costs. These are the costs your business incurs, regardless of sale volume: • Rent, rates and premises costs • Admin fees • Fixed salaries • Director’s remuneration • Vehicle costs - hire purchases/contracts hires • Long term Equipment hire and leases • Loan repayments • Telephone, internet • Advertising • Monthly subscriptions

2. Assess current projects completion, and prepare a forecast of money coming in during the following months

3. Consider agreeing a time off for your staff

4. If you think you may need a short-term loan/overdraft - talk to your bank manager regarding Coronavirus Business Interruption Loan Scheme

5. You may arrange a payment plan with HMRC if your VAT bill is due.

Contact us if you think we may help you to prepare for the coming months. What is your action plan? Stay proactive.