HPD launches Aquarius Construction Finance
Finance providers can now use specialised software to operate in the construction sector, which was traditionally a 'no-go zone' for commercial lenders, due to its risks and complexities. This breakthrough comes as the result of recent developments carried out by HPD Software - the leading provider of IT solutions to factors, invoice discounters, supply chain finance programmes and asset based lenders.
HPD's new technology, Aquarius Construction Finance, has been designed in collaboration with one of its key industry clients - specifically for lenders who fund construction sub-contractors. The module provides a solution to help protect the lender by managing the overall construction contract.
The software also helps lenders by catering for construction sector nuances such as variations to the contract, materials on site, deductions (main contractor’s discount, retentions, CIS), additions to the contract scope and counter claims (disputes) that affect the collectible debt; all complexities which may have held them back from providing finance in the past. By tracking the overall contract, special rules are applied to detect key risks. The finance company can then choose to restrict funding, where applicable.
The system follows a 'self-service' approach, allowing the sub-contractor to enter applications for payment online, with funds being drawn in a similar way. The sub-contractor is able to view the ledger-card for each contract, so they are fully up-to-date in respect of the contract progression in terms of applications, certificates and payments.
Kevin Day, Chief Operating Officer at HPD Software, said: "The construction sector has historically been a difficult area to finance due to its complexity and risk profile. The majority of banks and finance providers have tended to shy away from this 'unfactorable' debt, although a clear need for financing exists.
“Current solutions are labour intensive with manual recording and tracking processes. Lenders generally rely upon spreadsheets to track contracts, with the inherent risk that this method causes.
"Finance providers servicing construction sub-contractors with invoice finance need lending software to make the process as seamless, efficient and risk averse as possible, which to date has not existed. In response to industry feedback and extensive cooperation, we have developed Aquarius Construction Finance, which we are now pleased to launch in the market."
HPD Software believes the introduction of the new module reduces the lending risk to the construction industry. It also enables finance providers to devise solutions for other industries that rely upon stage payment contracts.
Read the September 2016 issue of Construction Global magazine
Environment Agency clamps down on plastic films and wraps
Businesses in the waste and construction industries must ensure they deal with waste plastic properly to stop illegal exports, the Environment Agency (EA) has warned.
The warning comes as the Agency is increasingly aware of plastic film and wrap from the construction and demolition sector being illegally exported.
Exports are frequently being classified as ‘green list’ waste of low risk to the environment, but are often contaminated with materials such as mud, sand, bricks and wood, posing a risk to the environment and human health overseas, and undermining legitimate businesses in the UK seeking to recover such waste properly.
During the last year, the EA has intercepted shipments to prevent the illegal export of this material on numerous occasions. The Agency inspected 1,889 containers at English ports and stopped 463 being illegally exported. This, combined with regulatory intervention upstream at sites, prevented the illegal export of nearly 23,000 tonnes of waste.
Those convicted of illegally exporting waste face an unlimited fine and a two-year jail sentence. But construction firms could also face enforcement action if contaminated construction and demolition waste plastic is illegally exported.
Malcolm Lythgo, Head of Waste Regulation at the Environment Agency, said it is seeing a marked increase in the number of highly contaminated plastic film and wrap shipments from the construction and demolition industry being stopped by officers.
“I would strongly urge businesses to observe their legal responsibility to ensure waste is processed appropriately, so we can protect human health and the environment now and for future generations. It’s not enough just to give your waste to someone else - even a registered carrier. You need to know where your waste will ultimately end up to know it’s been handled properly. We want to work constructively with those in the construction and waste sectors so they can operate compliantly, but we will not hesitate to clamp down on those who show disregard for the environment and the law.”
There are a number of simple, practical steps that businesses can take to ensure that C&D site waste is handled legally.
Construction businesses should check what’s in their waste
- Different waste types need different treatments and so must be correctly categorised to ensure it goes to a site that is authorised to handle it safely. Businesses can also check if their waste is hazardous as different rules might apply.
- If you are removing the waste yourself, you must be a registered waste carrier- registration can be carried out here. When a waste collector is transporting your site waste, you must check they have a waste carrier’s licence from the EA.
- You must also check that the end destination site any waste is taken to is permitted to accept it and has the right authorisations in place. Keep a record of any waste that leaves your site by completing a waste transfer note or a consignment note for hazardous waste which record what and how much waste you have handed over and where it is going.
Waste management industry must adhere to export controls
- Contaminated C&D waste plastic - including low-density polyethylene (LDPE) wrap and film - must be exported with prior consent from the EA as well as competent authorities in transit and destination countries.
- Those involved in the export of such waste must ensure that it meets the requirements set under the relevant export controls, such as being almost free-from contamination; the destination sites are appropriately licensed to receive and treat the waste; and waste is correctly managed once received.
The EA will continue to actively target those who export contaminated C&D plastic waste illegally, including any accredited packaging exporters who issue Packaging Waste Export Recovery Notes (PERNs) against such material in breach of their Conditions of Accreditation.
Businesses involved in the shipment of waste are required to take all necessary steps to ensure the waste they ship is managed in an environmentally sound manner throughout its shipment and during its recycling.
Anyone with information regarding the illegal export of waste including C&D waste plastics can contact the EA’s Illegal Waste Exports team at: [email protected] or anonymously via Crimestoppers on 0800 555 111 or via their website