13th February 2014
Subcontractors to shame firms into paying bills on time
As late payments continue to be an issue, subcontractors take further action to name and shame firms who are not paying them on time.
With late payments still a worrying large issue within the construction industry, trade contractors have demanded the government call a late payment summit in order to shame major firms into paying their bills on time. Subcontractors are hoping that the event will be similar to John Prescott’s construction health and safety summit in 2001, which had an impressive effect on the industry’s accident record.
The call to action comes as a response to the government’s latest consultation on late payment, during which the National Specialist Contractors’ Council admitted believing now would be a good time to fundamentally change the payment culture in the UK: ‘the industry can change its behaviour, it just needs clear direction and a sanction to make it happen.’
As long as late payment continues to be disregarded and public sector contracts continue to be awarded to companies despite their poor payment practices, late payment is likely to continue to be a problem in the construction industry. Subcontractors are calling for late payment to become socially unacceptable and for companies to be publicly named and shamed on their payment performance.
With Integrity Software, late payments should not be an issue. Our construction software provides programs that make payment processes simple and efficient to ensure you have the time and support you need to make your payments on time, every time. For more information on the services we can offer, contact the team today.
UK construction industry forecasts paint a mixed picture for 2014. What does the future of the construction industry hold for your business?
Nucleus Commercial Finance has revealed that it will be making early payment schemes available to medium-sized contractors. Is this a good thing or a bad thing for the construction industry?
Look ahead to 2014: professor Rudi Klein calls early payment schemes ‘a cancer within the industry.’
Early payment schemes are now commonplace amongst Britain’s larger construction industry contractors, and these firms argue that the schemes provide them with greater financial flexibility.