Laing O’Rourke Demands Extra Time To Pay Bills

1st February 2018.

It seems the sector has not yet recovered from recent setbacks, as the construction company, Laing O’Rourke struggles to pay its suppliers on time. According to recent reports, the construction firm has asked suppliers for extensions on payment terms. The majority of sub-contractors have refused to make any adjustments, while those who accommodated, saw their payment terms slip to a 60 days grace period as a result.

Since the collapse of construction giant, Carillion earlier this month, the construction sector has been put under the microscope. Small businesses are said to have become Government’s priority, and a task force has been set up to aid victims of the collapse. Nonetheless, companies like Laing O’Rourke are still falling through the cracks, highlighting the need for a strict and swift solution to late payment. Many of our members of the Credit Protection Association had complained about Rourke, and we took action accordingly. We encourage all business owners to monitor their customers and suppliers closely, and avoid those firms that will not pay.

Many big businesses are still refusing to change their ways, and Laing O’Rourke is not admitting to a mistake. One spokesperson for the construction company said: “Our process for supply chain management hasn’t changed in over two years.

“We manage stakeholders responsibly within industry norms, which is closely monitored.”

The contractor confirmed this week that it would be late filing accounts at Companies House with final numbers now due in next month.

This latest news about construction company, Laing O’Rourke, has further emphasised the need for late payment regulation. The small business commissioner, Paul Uppal, previously spoke about enforcing prompt payment through legislation if collaboration with large companies fails. This tough approach may be necessary if sub-contractors are continually forced to negotiate payment terms and go unrewarded for services and goods they have supplied.

Here at the Credit Protection Association we keep a close eye on all our members’ debtors and are quick to warn against any shady characters. It is important that business owners take precautions also, and CPA offers thorough credit reports and company directories, to allow our members to have full knowledge of their customers’ financial status.

If you are worried about Laing O’Rourke or any overdue accounts, please contact CPA for help and advice!

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

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