Pictured above: Gill Payne, partner in the construction debt recovery team at Wright Hassall

A leading debt recovery expert is warning construction firms not to waste time before chasing payments or else they could risk missing out altogether.

The latest statistics from the Office of National Statistics (ONS) suggest that the construction sector is continuing to struggle with varying reports on the outlook for recovery.

Reasons for this include the reduction in the size of projects due to spending cuts as well complete cancellation in some cases.

Another concern that follows on from continuing financial difficulties is that clients may attempt to retain monies for longer.

And with construction administrations and receiverships on the increase, there is also a risk within the sector that businesses will not be able to collect at all.

Media reports revealed that Midlands-based contractors are estimated to have lost over £456,000 when Wigan-based housebuilder McInerney Homes went into administration.

Gill Payne, partner in the construction debt recovery team at Midland law firm Wright Hassall - who was nominated for Commercial Credit Manager of the Year at the Credit Today awards - has urged firms not to leave it too long before pursuing non-payment.

She said: "A customer is only a good customer when they pay. 

"In our experience, the earlier that we can tackle non-payment, the more successful we can be in securing payment and protecting cash flow.  

"Some businesses feel embarrassed in chasing for payment which is where firms like ours can help. 

"Whichever collections strategy works for you, make sure you are pro-active and pick up the phone as soon as you have an inkling of a problem.

"However, there are some factors that must be considered to help protect your business in the first instance.

"It is important that you know your customer and understand their business so you can pick up early warning signs.

"You must also place added emphasis on timely, accurate invoicing and deal with any potential problems quickly.

"Build up relationships with the clients' accounts payable team so that such matters can be discussed while using a specialist debt collection team to recover outstanding costs, allowing you to maintain good relationships."

For more information about Wright Hassall, please visit their website here: www.wrighthassall.co.uk or call 01926 886688.