Prompt payment improvements “never more important”
Following the latest Build UK figures that found nearly a third of major contractors are paying faster than 30 days, Mark Beard, chairman at Beard Construction said: “It has probably never been more important to ensure fair treatment of suppliers and subcontractors including prompt payment of invoices, as the industry continues to bounce back from the economic shock of the pandemic.
“So, it is encouraging to see that average payment times improved over the last six months, even by just one day, particularly as we are faced with the real challenge of the materials shortage at the moment.
“In fact, it seems clear to me that one of the ways to mitigate the risk of projects running late due to supply chain issues, is to ensure prompt payment as that will inevitably mean better working relationships with those suppliers and subcontractors.
“We are all aware that construction sites generate a significant amount of work for smaller suppliers and subcontractors. So, if we choose to work with them, we have a responsibility to support them through prompt payment of invoices.
“The figures from Build UK show that average contractors paid subcontractors within 34 days, which is 11 days quicker than in July 2018 when they first started collecting data. That is commendable progress but we can and should do more to adhere to the principles of the Prompt Payment Code.”