In Focus Commercial Credit


Payment improvements ‘never more important’


Economic recovery will be held back if it does not go hand in hand with invoicing discipline


Mark Beard Chairman, Beard Construction


Last month, the latest Build UK figures found nearly a third of major contractors are paying faster than 30 days.


Bounce back 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.


Encouraging 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.


Mitigate risks 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.


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


Figures 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. CCR


August 2021


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