Micro SMEs and Quantity Surveyors: A Strategic Partnership for Growth and Success

The construction industry is constantly changing in Ireland and the UK. In the construction industry, 99% of businesses are classified as SMEs. Of those, 80% are micro SMEs. These smaller players must operate efficiently to navigate industry complexities.

What is a micro SME?

A micro SME is a business with ten employees at most. In construction, a micro SME often looks like a small subcontractor specialising in a trade like carpentry or electrical work.

The Significance of Quantity Surveyors

Quantity surveyors (QSs) are crucial in supporting micro SMEs, especially in Ireland and the UK. These construction professionals have a strong grasp of construction costs and rates. They also understand the details of construction projects. This expertise is very helpful for micro SMEs who may not have their own resources or knowledge in-house.

Overcoming Challenges Faced by Micro SMEs

Micro SMEs in the construction industry often face unique challenges, including:

• Micro SMEs, with limited resources, may find it challenging to allocate time and expertise for cost estimation, negotiation, and project management.
• Micro SMEs may struggle to keep up with current market rates for materials, labour, and equipment. This can lead to underbidding or overspending.
• Day work agreements can be risky for micro SMEs. They pay based on hours worked, not tasks completed. This can lead to unexpected costs and less profit.

The QS Advantage for Micro SMEs

Employing a QS offers a multitude of benefits to micro SMEs in Ireland and the UK:

• Quantity Surveyors have the expertise to assess bills of quantities (BOQs) accurately. This ensures that small businesses are paid fairly for their work.
• QSs advocate for micro SMEs during negotiations with main contractors and clients to ensure fair project value distribution.
• Efficient project management helps micro SMEs by handling tasks like measuring and managing cash flow. QSs streamline the process, allowing businesses to focus on their core competencies.
• QSs help micro SMEs identify and evaluate risks during the project’s lifespan. This helps them make informed decisions and reduce financial losses.
• QS’s an alleviate the paperwork burden faced by micro SME’s and help continuously put forward tenders so the contractor can have a pipeline of work lined up.

Industry Insights from Ireland and the UK

Ireland:

• In 2023, the Irish construction industry is growing steadily and is expected to reach €24.8 billion according to the Construction Industry Federation (CIF).
• Small businesses make up about 98% of all construction companies in Ireland, showing how important they are to the industry.
• The Irish government is helping small businesses in construction through the CIF Mentoring Programme.

UK:

• In 2023, the UK construction industry is predicted to grow by 3.1% according to the Construction Products Association (CPA). This growth will be fueled by infrastructure projects and more people needing homes. 
• Small businesses, called micro SMEs, make up about 99% of UK construction companies. This shows how crucial they are to the sector.
• The UK government has programs to help small construction businesses, like the Access to Finance scheme.

With low-profit margins, it is challenging but not impossible to succeed as a micro SME in the construction industry.

Here are our top 10 tips for success:

1. To be more efficient, Micro SMEs can use construction management software. This software helps with project management, budget tracking, and communication. This can help manage multiple projects efficiently and track expenses and timelines.
2. Networking and partnerships are essential in the construction industry. You can create more opportunities by connecting with other professionals, suppliers, and clients. Collaborating with other micro SMEs can also help in sharing resources and knowledge.
3. It’s essential to keep up with industry trends in construction, like new methods and materials. You can do this by reading industry publications, using online resources, and attending workshops and seminars.
4. Small businesses in the construction industry can benefit by specialising in a specific niche. For example, they can focus on sustainable building practices or innovative construction technologies. This can help in standing out in a crowded market.
5. Micro SMEs need to understand their finances well for effective financial management. Regularly reviewing cash flow, expenses, and profit margins can help make informed business decisions.
6. Ensuring compliance with safety and building regulations is critical. Using quality control processes can keep high standards and build a good reputation.

7. Building and keeping strong relationships with clients can lead to them coming back and referring others. Providing excellent customer service and ensuring client satisfaction should be a priority.
8. Investing in employee training and development can improve skills and efficiency. This also helps in retaining talent and enhancing team morale.
9. By adopting sustainable and eco-friendly practices, you can lessen your environmental impact. This can also attract environmentally conscious clients.
10. Consult with experts in the industry, like surveyors, lawyers, and financial advisors. They can give you valuable insights and help you deal with complex challenges.

Conclusion

Micro SMEs in Ireland and the UK are essential for construction and economic growth. When micro SMEs work with a quantity surveyor (QS), it helps them overcome challenges, make more money, and be successful in the long term. With the help of QSs, small businesses can understand the industry, get fair pay, and become respected in construction.

The team at Carroll Estimating work with SME’s of all sizes. Get in touch to chat through your upcoming projects and learn more about how https://carrollestimating.ie/services/ can help you build profitably confidently.