Nicholas, J; Holt, G D and Harris, P T (1999) Materials suppliers: The builders' banker? Journal of Financial Management of Property and Construction, 4(3), pp. 29-38. ISSN 1366-4387
Abstract
Materials suppliers are important players within the construction industry. Not only for the raw materials they provide, but also, because they furnish contractors with additional working capital by allowing them materials on credit. The purpose of this research is to identify whether materials suppliers' are indeed the 'Builders' Banker'. The results of a UK national survey of materials suppliers' credit control and debt collection practices, as part of ongoing research into contractor creditworthiness evaluation methods, would seem to confirm that suppliers are a vital source of contractors' working capital It is apparent that suppliers are critical to the functioning of construction activity. Through the credit they furnish suppliers are (i) exposed to potentially high levels of financial risk, (ii) influence the number of contractors operating in the industry; and (iii) by way of item (ii) have an influence upon tender prices.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | materials suppliers, builders' banker, credit, interest, risk |
| Index terms: | national survey, construction activity, construction industry, tender price, builder |
| Subjects: | industry analysis, tendering, practitioner, construction operations, research products and data |
| Topics: | Procurement, Research Practice, Roles and Professions, Site Management |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here