31 January 2019
Build UK Members Improve Payment Performance
The majority of Build UK members have now published their payment results for a second time and there has been an improvement across the board over the last six months.
Using data submitted under the Duty to Report on Payment Practices and Performance, which requires all large companies to report on their payment practices every six months, Build UK is benchmarking its members on the average time they take to pay invoices and the percentage of their invoices paid beyond terms. Across Build UK members, the average time taken to pay has fallen from 45 to 43 days and the average percentage paid beyond terms has reduced from 30% to 26%.
There was widespread recognition of the need to improve payment practices when Build UK published the first set of results last July and the increased transparency has started to change the industry culture and drive improved practices. Build UK members have focussed on developing their systems, implementing clear policies and training their staff in order to improve their performance and support their supply chains.
With company reports needing to be approved by a named director, the Duty to Report has ensured that the issue of payment is now firmly under the spotlight at a senior level.
Mark Castle, Chairman of Build UK and Deputy Chief Operating Officer at Mace, said:
“These improvements demonstrate the importance of increased transparency on the issue of payment. Build UK has held a mirror up to its members who have responded by taking significant steps to review and address performance within their organisations. There is still a lot of work to be done – for example, encouraging further transparency around disputed payments – but these results are a clear move in the right direction and show that the industry is serious about tackling this long-standing issue.”
Information on Build UK’s eligible Client, Contractor and largest Specialist Contractors can be found on the Build UK website. Detailed information on all businesses that are required to report can be found on GOV.UK.