Small-to-medium sized businesses are often badly affected by late payments, with larger clients often delaying settlement of invoices as far as possible. A committee of MPs, led by anti-late-payment campaigner Abrahams, assembled with the intention of tackling the practice across all industries, but revealed that the construction sector was one of the ‘worst offenders.’
Rather than simply reveal the full extent of the problem, however, the MPs have pledged to tackle the persistent issue of late payments in the construction sector, recommending legislation to instil a code of conduct amongst suppliers, construction firms and clients here in the UK.
‘It’s a terrible shame that companies in the construction sector have to deal with the unscrupulous practice of late payments’, said Integrity Software’s Managing Director, Justin Moule.
‘These findings work to highlight the importance of accurate job costing, as few firms have the financial stability to deal with delayed invoice payments on top of unexpected job costs.’