26 January 2017
Build UK Supports Fair Payment with Guidance on Payment Charter
Build UK has published guidance to assist companies with signing up to the Construction Supply Chain Payment Charter and implementing the commitments within their construction contracts.
The Construction Supply Chain Payment Charter contains 11 commitments, which Build UK members have agreed set out what best payment practice in construction looks like, including 30-day payment terms by 2018 and no retentions by 2025.
Build UK supports the Payment Charter and the Implementing the Construction Supply Chain Payment Charter Guidance Note will provide clarity for signatories on implementing each of its commitments. Companies that have signed up to the Payment Charter are free to interpret how the commitments are given effect in contractual provisions and Build UK’s step-by-step guidance details what should and should not be included within a contract that truly complies with the Payment Charter.
Build UK is committed to tackling the industry’s payment challenges and, by signing up to the Payment Charter and implementing prompt and transparent payment practices, members can play their part in improving the payment culture across the industry.
Build UK Contractor members Mace, Osborne and Skanska, as well as a large number of Trade Association members, have signed the Charter and all Build UK member signatories can be found on the Build UK website. Key clients including Crossrail and Land Securities have also signed up to support fair payment through their supply chains which is a fantastic display of the industry’s joined up approach to improving payment terms.
To apply to become a signatory to the Payment Charter, a company must first sign up to the Prompt Payment Code (PPC). Companies in construction can then join the Payment Charter by clicking the ‘Apply’ button at the bottom of the Payment Charter website and the person who completed the PPC application will be emailed a link to the Payment Charter application form. Once completed, your company will then be listed as a Payment Charter signatory and can use the Payment Charter logo on your own website and documentation to show that you follow good payment practices.