17 July 2019

Build UK Statement on Prompt Payment Code

The Chartered Institute of Credit Management (CICM) has announced that it has suspended more signatories from the Prompt Payment Code for non-compliance with its requirements.

Build UK believes that fair and transparent payment practices are essential for a successful and financially viable construction industry capable of delivering the built environment the UK economy needs.

The Duty to Report on Payment Practices and Performance has increased transparency and is promoting a culture of prompt payment. This has led to signs of improved payment performance in the construction industry; however, more progress is needed and that will require fundamental change across the sector. Many companies are taking action to improve their payment systems and we now need to tackle the wider issues associated with the high risk, low margin construction business model.

Actions such as the suspension of companies from the Prompt Payment Code will no doubt attract headlines and demonstrate the continued focus on this issue, but the positive steps that companies are taking to improve payment performance should also be highlighted.

Build UK will continue to drive change in the construction sector by bringing together the supply chain to develop more collaborative ways of working with the ambition of creating an environment in which companies can further improve payment performance.