Construction

Together with the hospitality sector, construction is responsible for the majority of all bankruptcies each year. Construction is a broad, but precarious sector, with numerous stakeholders hanging together, reliant on each other, like a chain. Disruption in the sector often affects all parties. Graydon can assist with appropriate compliance solutions to manage risks and detect opportunities. 

Graydon Industry Insights Sectors Construction Information

A special year

2020 was a special year. The bomb has not yet burst, but in the medium term, the coronavirus crisis will also take victims from the construction sector. Everyone realises that this is coming, because the construction sector is sensitive to the economic cycle, but at the same time also late-cyclical in nature. 

Consumer confidence is declining. Uncertainty causes investments and major projects to be postponed. The number of government tenders for such projects has also decreased considerably. In addition, approval of permits and planned permission has been painfully slow. 

It means that the players in the construction sector still have a number of projects to complete, but new orders are scarce. The order book for the near future looks empty. A price battle, pushing margins further down, lurks around the corner. It is a major challenge for the sector to remain competitive. 

Consistent challenges

In the midst of all these challenges, it is essential to perform thorough customer and supplier due diligence before your company goes into business with other parties. It ensures that - even before you get started - you can already estimate the reliability of your business relations. You don't want to risk starting a project with someone with a dubious reputation. If this comes to light when the project is up and running, it is already too late. Due diligence prevents these nasty surprises during construction projects or at least significantly limits the chance of this. So in addition to a credit check, it is advisable to thoroughly research the background and reputation of your partners for strategic projects.

Customer due diligence in the construction industry

In the midst of all these challenges, it is essential to perform thorough customer and supplier due diligence before your company goes into business with other parties. If you know which parties you are dealing with, you will significantly reduce the (financial) risks for your organisation. With all the uncertainty and the volatile nature of the construction sector in mind, this is not an unnecessary luxury. Due diligence prevents nasty surprises during construction projects or at least significantly limits the chance of this.

Strategic partner

In the sector, more and more stories of fraud involving building materials and machines are also emerging. A big blow to the construction companies that are affected by it. Be aware that there are solutions to detect fraud at an early stage. 

In a sector where there are many risks, you need accurate information that takes into account the most recent developments. Every weak link in the chain is a risk. Because as soon as a link fails, it has an impact on your company. Graydon is your strategic partner and provides you with the right solutions to manage these risks and organise processes efficiently. But also to detect opportunities. Because organisations that focus on healthy companies can significantly improve their margins and Return On Investment (ROI). 

Success Stories
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  • Douma Staal

    “By putting our most important customers in the monitoring list, we can keep track of changes.”
    Marco Ringnalda
    Finance and P&O, Douma Staal
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    Douma Staal - Success Story