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Payment Practices Exposed Amid New Construction Figures

Criticism has once again been levelled at the construction industry as invoices continue to be paid late.

Late payment continues to tighten its grip on small business, with large firms still hesitant to improve on past behaviour. Since the collapse of Carillion, the construction industry has received the most attention, with its payment procedures and treatment of suppliers heavily scrutinised.

New figures released by construction organisation Build UK have exposed the maltreatment and supply chain bullying, committed by some of the country’s most prestigious construction firms. Interserve and Robert McAlpine are just two of the firms who saw their payment periods published and condemned by the public.

The instigator of events, Build UK, had its own conduct scrutinised recently when none of its suppliers were paying their invoices on time. The resulting scrutiny left other firms vulnerable, with Interserve now under fire for failing to meet agreed payments in 83 percent of cases. It was Engie and the Murphy Group who came up on top, however, with an average waiting time of 61 and 66 days respectively.

Prompt payment is an important business mantra and one which the Credit Protection Association encourages its Members to live by. Paying customers and suppliers on time is fundamental to the successful running of a business, but it is not always easy. The business community is governed by a supply chain, with every late and delayed payment sending ripples throughout.

Neil Ramsey, secretary of Construction Alliance NorthEast (CAN), said: “Given the evidence of the Build UK report, this is a high-risk strategy. Sustainability in the construction sector and its supply chain is essential if the Government is to meet its targets on housebuilding and infrastructure development.”

To break the cycle, business owners need to focus on their own creditworthiness. Unlike much of our market competition, CPA contributes more to modern business than an injection of cash. While our debt recovery services relieve our Members from the short-term effects of late payment, it is our credit information and management products that keep those finances protected.

At CPA, we provide our Members with a comprehensive credit assessment service, which scrutinises debtor’s finances through credit reports and directorship databases. This can be utilised on the behalf of limited companies, as well as sole traders and partnerships.

Most recently, we have gone even further in our efforts to help our Members. CPA has launched a service that will recover for clients, late payment interest and compensation due from debtors for the past six years. This service can unlock hidden cash resources and achieve substantial improvements to the client’s cash flow without initial outlay or risk.

CPA believe earnestly that it is doing its bit to dismantle the late payment culture and improve the overall economy.

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The Latest Insolvencies to 07 Aug 2018

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