These liquidity and transparency issues have become somewhat at the forefront of our minds given the recent fall of UK based Carillion, the UK’s second largest construction firm and major Government supplier. In January 2018, the company entered into liquidation leaving an estimated £1.5bn in debt and leaving 43,000 employees and over 30,000 suppliers unsure of their future. Within weeks insurers paid out more than £30m to a minority of firms that had insured against non-payment, however many suppliers did not have this cover and will face having to accept pennies in the pound.

A situation arising like the Carillion fall over not only impacts those supplying the company, but also those who had contracted the company to complete their works. The buyer’s projects come to a halt incurring additional time delays for projects as well as increased costs to now find other suppliers to take over and complete the project. In instances like this, the buyer will likely incur additional holding costs that can be significant depending on the size of the project, further putting them at risk.

Unfortunately, the situation with Carillion in the UK is not a one-off. In Australia, between June 2016 and March 2017, 1481 companies within the Construction industry entered into liquidation. External liquidators cited “inadequate cash flow or high cash use” as the reason for failure for 868 of these companies.

Across Europe and USA, we have seen the same situations rise time and time again. The illiquidity of companies operating who employ large numbers of people as well as subcontractors and numerous suppliers that are all left wondering if they’ll be paid and if they are paid, how much in the dollar will they be paid.

This has become the expected norm in the global construction industry and I’ve heard it time and time again that most just accept these challenges as part of being in the construction game.

But why should it be the norm? Why can’t we look at the problem and develop a real world, scalable solution?

At Avestix, we believe we have. We believe blockchain technology has created a unique opportunity to solve these issues as well as many of the associated challenges that the global construction industry is facing.

To stay up-to-date with us, join us on Telegram or visit our website to find out more.

Blockchain — What can we solve in the Global Construction Industry? was originally published in Avestix on Medium, where people are continuing the conversation by highlighting and responding to this story.

Late payments, non-payments and insolvencies have become enduring issues within service based industries. What most would consider poor business practice has become a somewhat standard operating model for many.

Using “allocated funds” to offset supplementary project costs and avoid the deep hole of additional financing, is a temptation too often grasped.

In the Construction industry alone, “inadequate cash flow or high cash use” led to the failure of 868 Australian based companies between June 2016 and March 2017.

Introducing Avestix

Avestix recognises an opportunity to combine the old with the new. A cornerstone of the global economy with the potential of blockchain based technology. We are creating a Secured Liquid Marketplace for Peer-to-Peer Financial Services on the Blockchain.

We are implementing a decentralised platform that facilitates the emergence of a fully liquid marketplace for goods, services and commodities. A service ecosystem that fosters accessibility, liquidity, security and transparency.

An intuitive shared ledger which can be relied upon as a single source of truth of payment and satisfaction of contractural obligations.

The Platform

Peer-to-Peer Service & Supply Market
P2P connectivity between buyers & suppliers. A membership based platform providing efficiencies in the procurement of services & supply of goods.

Guaranteed Secure Payment
Security of payment & surety of funding allocations are GUARANTEED for all parties within the platform. Contracted parties need no further external proof of payment.

Tokenization of Assets
Facilitate the tokenization of residential & commercial property assets, enabling greater liquidity for asset holders & diverse investment options for members.

Stay in the Avestix Loop

Over the coming few weeks we will introduce you to the Avestix team, partners & announce the upcoming milestones as well as keeping you up-to-date with the latest developments as they happen. Stay tuned by subscribing to our newsletter and join our Telegram Announcement community.

Next Generation Services Deserve a Next Generation Token was originally published in Avestix on Medium, where people are continuing the conversation by highlighting and responding to this story.