H2 Commercial Solutions are a specialist provider of commercial support services to the construction and engineering industries from inception to final account.
Construction companies typically operate on very low profit margins with significant volatility in project outcomes. The last few years in the UK have been characterised by a challenging environment leading to many companies suffering financial distress and reverting “back to basics” to re-set and improve performance.
In many cases, issues have been compounded by the failure to operate robust and ruthless operational and commercial discipline; the reasons for this are varied but can often be due to the complex and busy environments in which project teams operate leading to ever changing priorities with key performance indicators being overlooked.
To our mind, the basics are non-negotiable and form the foundations from which every business and/or project should operate. There is no one size fits all approach however underpinning every successful business and/or project you will find robust operational and commercial discipline. The basics transcend the sectors in which we operate.
Whilst unforeseen events can occur, the current Covid-19 pandemic has once again shone the light on the importance of robust cash management and cash backed margin.