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Beard chairman Mark Beard has warned that he expects disputes between contractors, suppliers and clients will escalate once the government鈥檚 furlough scheme comes to an end.

The Treasury has introduced several cash-saving measures for firms in the wake of the covid-19 pandemic including loan schemes, VAT deferral and the furlough scheme.

Beard, who took up the post of president of the Chartered Institute of 黑洞社区 last week, said his company had been forced to furlough around 50 of its 300 staff as jobs where it is preferred bidder got caught up in the government lockdown.

鈥淭he furlough scheme, the VAT delay 鈥� all these things have helped contractors鈥� cash flow,鈥� he said. 鈥淭he worst sort of behaviour hasn鈥檛 happened but I think it鈥檚 put off the day of reckoning. I think it鈥檚 inevitable we鈥檒l see more bad behaviour.鈥�

In April, Construction Leadership Council chairman Andy Mitchell said: 鈥淥ur actions at this time will be remembered. All firms should think hard about how their reputation could be damaged by not doing the right thing.鈥�

At the same time, Beard (pictured) said 鈥渕ain contractors have a responsibility to ensure they do everything they can to support suppliers鈥�.

Beard said many firms expected to find the second half of the year much harder than the first six months as the full impact of the lockdown and slowdown in new work coming through takes hold. 鈥淲e had a good first six months but the second six months will be tougher.鈥�

The 拢160m turnover contractor, which has four offices in southern England, including its head office at Swindon, said it expected income this year to be down by around 15%.

Beard added: 鈥淚 think we鈥檙e going into a serious recession. I think this will be a long haul rather than being over quickly.鈥�

The firm has 40 sites and is operating at around 90% of productivity 鈥� having gone down to 50% at the height of the pandemic. 鈥淲e managed to keep going so we got output up from a relatively high number than if we鈥檇 had to shut down completely,鈥� Beard said.