26 September 2016
Update on Tackling Late Payment
Small Business Minister Margot James recently wrote to signatories of the Prompt Payment Code to highlight progress in tackling late payment.
Build UK is committed to delivering change in payment practices across the industry and is a supporter of the Prompt Payment Code (PPC) and the Construction Supply Chain Payment Charter. The Minister’s letter suggested that payment practices had been improved by:
• Central Government departments publishing their quarterly payment results which show that 80% of invoices are paid within 5 days
• Legislation which requires 30 day payment terms to be passed down the supply chain in all public sector projects
• The PPC Board assessing the criteria for ‘exceptional circumstances’ where payment terms of over 60 days are acceptable.
The letter also confirmed that the new Duty to Report on payment practices for large companies will come into effect from 6 April 2017. The Government will be publishing guidance in the autumn and Build UK is encouraging members to lead the way by voluntarily reporting early.
To make further improvements to payment practices within the industry, Build UK will consider what best practice looks like and present appropriate business models that result in a thriving construction industry.