The latest results published under the
Duty to Report on Payment Practices and Performance show that Build UK members have maintained their
payment performance over the last six months, despite the significant pressures caused by rising inflation. Contractor members are now reporting an
average of 31 days to pay invoices, down from 32 days at the start of this year and 45 days when the Build UK table was first published in July 2018. On average, they are paying 94% of invoices within 60 days, up from 82% four years ago.
Commenting on the figures, FIS CEO Iain McIlwee said:
“On the surface this is encouraging, but we do have to dig behind the numbers. Here we are simply measure the time lag from invoice being raised to invoice being paid. In the modern digital world, there are few excuses for being late. If we look past the numbers we are still seeing applications for payment disputed to slow down the invoice, pressure to accept long payment terms, discounts to pay on time and worse tenders being scattered to trap the unsuspecting in suicide bidding in order to meet unsustainable pricing. These are challenging conditions and the whole supply chain needs to react – some are, but in parts of the market there is little empathy and support for the SMEs in the supply chain.”
Build UK’s payment performance table features more than 100 of the industry’s largest companies, including contractors, clients and housebuilders, to provide a comprehensive picture of payment practices across the construction industry.
All the latest business news can be found in Build UK’s Improving Business Performance update.
