Half of Build UK Contractor members now pay in an average of 30 days or less, according to the latest results published under the Duty to Report on Payment Practices and Performance.
Despite the ongoing challenges presented by the COVID‐19 pandemic, payment performance has improved again over the last six months, underlining how the increased transparency provided by the Build UK table is transforming the industry culture around payment. Contractor members are now reporting an average of 32 days to pay invoices, down from 34 days last July and 45 days when Build UK first published the information in July 2018. On average, they now pay 95% of invoices within 60 days, up from 82% three years ago, and 82% of their invoices are paid within terms, compared to just 61% in 2018.
FIS Chief Executive Iain McIlwee said “There are some good signs here, but let’s not get complacent – we know from our work with the Small Business Commissioner that most complaints against the Prompt Payment Codes still relate to construction and that the payment issue is more nuanced than when the invoice is raised and paid.
Basically these numbers, whilst positive, don’t present the full picture. We have been working with colleagues in the CLC to highlight this and look at the potential to include value as well as volume of invoice to provide a clearer picture and limit the potential for companies to distort their figures by paying a high volume of small invoices via credit card and also to look at how compliance and the data provided is monitored.”
Build UK’s table features more than 100 of the industry’s largest companies, including contractors, clients and housebuilders, to provide a picture of payment practices across the construction industry.