In the construction industry, transparency is critical yet often elusive. Large enterprise construction companies and their subcontractors operate within a highly fragmented ecosystem. Despite significant advances in technology across other sectors, construction remains one of the slowest to adapt, which exacerbates longstanding issues like lack of visibility, inefficiency, and the trickling down of costs to subcontractors.

The recent collapse of ISG Construction, the sixth largest construction firm in the UK by turnover highlights how this inertia continues to affect businesses within the sector, underscoring that until a more transparent and collaborative approach is adopted, these problems will persist. The knock-on effects ripple through the entire supply chain, disproportionately impacting smaller subcontractors, who often bear the brunt of these inefficiencies.

At Okappy, we believe that a more connected way of working can address these challenges. Our market network approach offers a solution that empowers businesses to improve transparency and streamline their processes.

This post will explore how lack of transparency in construction is damaging the industry and why Okappy’s innovative solution can make a difference.

The Transparency Challenge in Construction

The construction industry is notorious for being one of the least digitised sectors. According to McKinsey, it ranks near the bottom in terms of productivity growth. One of the main reasons for this is the lack of transparency across multiple layers of the supply chain. Every company—whether a contractor, subcontractor, or client—tends to operate within its own silo. Information is often locked into disparate systems, making it difficult for project stakeholders to gain a real-time, holistic view of progress.

What does this lack of transparency mean for construction projects?

• Inaccurate Data: When critical information is not shared across teams in real-time, the data used to make decisions is often outdated or incorrect. This leads to delays, miscommunication, and an increase in project costs.
• Increased Risk: Without full visibility, it becomes challenging to spot potential issues before they escalate. For instance, the inability to monitor subcontractor performance or track financials accurately can result in unexpected cost overruns, disputes, and even legal issues.
• Cost Shifting: A common response to these inefficiencies is for larger contractors to push costs down to their subcontractors. Subcontractors, operating on tighter margins, are least equipped to absorb these additional costs, often resulting in strained relationships and increased project risk.

In an industry where trust and collaboration are key, this level of opacity and inertia not only hampers project success but also places undue stress on smaller businesses within the supply chain.

The Inertia to Change: Why It’s Hurting the Industry

Despite recognising the importance of transparency, many large construction firms are slow to embrace new ways of working. This inertia comes from several factors:

• Legacy Systems: Many companies have invested heavily in legacy systems that may no longer be fit for purpose. Transitioning to new platforms can be seen as costly and disruptive, despite the long-term benefits.
• Fragmented Ecosystem: Construction projects often involve multiple stakeholders—clients, contractors, subcontractors, suppliers—each with their own systems, processes, and workflows. The complexity of integrating all of these elements discourages many from pursuing more streamlined, transparent approaches.
• Fear of Accountability: Transparency means accountability. Some businesses might be hesitant to adopt more open ways of working for fear that it will expose inefficiencies, delays, or mistakes. While understandable, this reluctance only perpetuates the issues they’re trying to avoid.

Yet the cost of maintaining the status quo is immense. Delays, budget overruns, and strained relationships with subcontractors are only the surface-level consequences of failing to address the need for greater transparency.

The Knock-On Impact on Subcontractors

While larger firms may have the resources to absorb the consequences of poor transparency, subcontractors often do not. These smaller businesses face unique challenges in an industry that places immense pressure on them to perform efficiently, despite not having access to the same information or tools as their larger counterparts.

Some of the most significant impacts on subcontractors include:

• Cash Flow Issues: Delays in payments are common in the construction industry. When subcontractors cannot accurately track project progress or invoicing, they are often left waiting months for payment, leading to severe cash flow problems.
• Lower Margins: As costs are pushed down from larger contractors, subcontractors frequently find themselves in a position where their already thin margins are eroded further.
• Reputation Damage: Subcontractors rely heavily on their reputation to secure future contracts. However, delays and inefficiencies caused by poor transparency and communication can tarnish their standing, even if they are not the primary cause of these issues.

The construction industry is built on relationships, and when subcontractors are left in the dark, these relationships are strained. For the sector to thrive, both large contractors and smaller subcontractors must work together in a more connected and transparent way.

Okappy’s Market Network Approach: A Better Way to Work

At Okappy, we recognise these challenges and are committed to providing a solution that fosters greater transparency and collaboration across the supply chain. Our market network approach brings together the best elements of a traditional network and modern marketplace, enabling businesses to work more effectively with their partners.

So, what does this mean for your business?

• Real-Time Visibility: Okappy provides a centralised platform where all stakeholders can access real-time data, whether it’s related to project progress, financials, or communications. This ensures everyone has access to the same information, reducing misunderstandings and mistakes.
• Accountability: Our platform encourages accountability across the board. Subcontractors can provide updates in real-time, and larger contractors can track their progress, ensuring that projects stay on schedule and on budget.
• Seamless Communication: By integrating communication into the platform, Okappy helps to eliminate the silos that traditionally exist in construction. Subcontractors and contractors can share information, updates, and documents easily, ensuring that nothing gets lost in the shuffle.
• Collaboration, Not Cost-Shifting: Unlike traditional systems that often push the burden down to subcontractors, Okappy’s platform enables a more collaborative approach. By providing visibility into every aspect of the project, subcontractors can anticipate issues, manage costs, and reduce the risk of unexpected expenses being forced upon them.

The Future of Construction: Connected and Transparent

The construction industry cannot afford to continue operating under the outdated, opaque practices that have held it back for decades. The stakes are too high, especially for subcontractors who bear much of the risk. The only way forward is through greater transparency, real-time communication, and a commitment to collaborative working practices.

Okappy’s market network offers a better way of doing business, one where valuable information is no longer locked away in separate systems, but shared openly and efficiently among all stakeholders. This shift will not only benefit individual companies but will also elevate the entire industry, paving the way for faster, more efficient, and more successful projects.

It’s time for a change—and Okappy is here to help make it happen.  Contact us today to find out more about unique network and how it could streamline your business and improve your relationships with your customers and subcontractors.