06th November 2014
Late payment tackled by government
The Prompt Payment Code returns to the spotlight with new advisory board.
A new advisory board has been set up by the government to tackle the problem of construction industry late payment. Representatives from several major companies have teamed up with the government to encourage adherence to the Prompt Payment Code.
The advisory board consists of representatives from Fujitsu, the City of London Corporation, Aviva, Barclays, Bury Council, Stort Chemicals, Skanska and Greggs, and aims to improve awareness, monitoring and enforcement of the Prompt Payment Code.
‘Late payment continues to plague businesses, putting a strain on cashflow and preventing plans for growth’, said Business Minister Matthew Hancock. ‘We have committed to tackling this problem, but there is no silver bullet. This is about a change in culture, which needs businesses and government to work together. The new Advisory Board will strengthen the Prompt Payment Code, cracking down on poor practice and showcasing good practice.’
Tackling prompt payment is an important step for all businesses, not least construction industry contractors – who often find themselves in an awkward position in the supply chain. While plans for stricter enforcement of the Prompt Payment Code are in development, merchants could benefit from construction-specific software designed to automate processes such as invoicing and payment reminders, in order to help establish a steady cashflow throughout the year. Automating accounting processes frees up staff time, helping to streamline the payment process and resulting in fewer supply chain issues.
To find out more about how construction accounting software can help you navigate late payment problems, contact Integrity Construction today and ask about our Evolution software.
Are late payments affecting your business? Two recently conducted surveys suggest that they remain one of the key issues facing the industry.
Are early payment schemes a great solution to the late payment problem in the construction industry, or are they unfair?
An inquiry into the payment practices of Britain’s businesses has revealed some unsettling results for the construction sector. Apparently, the construction industry suffers from a higher proportion of late paying clients than any other sector, with committee chairwoman Labour MP Debbie Abrahams accusing the industry of harbouring a ‘culture of late payments.’