Posted on 17/09/2014 in Home / Downloads / Credit information

Tackling Late Payments in the Construction Industry

Improving payment culture in the industry
Tackling Late Payments in the Construction Industry

Late payments has been an ongoing issue in the Construction Industry with serious consequences to smaller players in the industry. Larger firms who fail to pay on time to their sub-contractors can cause serious supply chain risk, particularly putting smaller firms out of business due to cash flow problems. As a result, the construction industry's 'late payment charter' is aimed at tackling the late payment culture. However, we assess the impact it's had within the industry.

Shifts in the dynamics of the construction industry are forcing even the largest main contractors to battle for private sector work that used to be below their notice. This is exposing smaller sub-contractors to a tough payment culture, in which they often have to pay their own suppliers substantially before receiving what they are due.

Into this environment drops the new Construction Supply Chain Payment Charter, which has been greeted with derision in some quarters of the industry. Will it help beleaguered sub-contractors? Many don’t believe it will…