Build UK has updated its payment performance table to include data on the value of invoices paid within 60 days for the first time. Following the introduction of new reporting requirements from 1 January 2025, large companies are now required to report on both the value and number of invoices paid within 0 – 30, 31 – 60 and over 60 days to provide even greater transparency for the supply chain around payment performance.

Information on the value of invoices paid within 60 days is currently available in the Build UK table for 16 out of 21 tier one Contractor members that are required to report.  The full set of results will be available in May 2026 when the remainder have submitted their first reports.

On average, Build UK tier one Contractor members paid 97% of invoices within 60 days by value compared to 96% by number, which highlights consistency of payment performance within 60 days whether measured by value or number of invoices.

In terms of payment performance it remains a concern that on average 16% of invoices are not paid on time and particularly concerning to see three house builders topping the league for percentage of invoices not paid within terms (Countryside Property – 53%, Vistry – 47% and Crest Nicholson – 39%).  Due to the way that companies are required to report on the value of invoices not paid within the agreed terms, Build UK is not able to include this data in its table at this stage, but report that they are in discussion with the Department for Business and Trade about what can be done to collect and present this data in a meaningful way.  In the meantime, businesses in the supply chain can check data by linking through to the detailed reports provided on the Government Website.

Commenting on the numbers, FIS CEO Iain McIlwee stated:

“We don’t have a full set of data yet and whilst it is positive that value and volume of invoices paid over 60 days does seem to align closely, the devil remains in the detail.  It is a concern that close to a quarter of companies on the list are paying over 20% of their invoices outside of terms. Delve further and it gets worse.  Two national house builders top the table in terms of not paying invoices within the agreed period, averaging half their invoices being paid outside of terms.  Withheld payments from just these two businesses (categorised late and disputed) equates to an eye watering amount – in excess of £0.5 billion.  This for me is scandalous.  This isn’t free credit, it comes at a premium, it impacts viability, productivity and the ability of the supply chain to invest.  This behaviour is at the root of the construction challenge, beyond the business argument it places a huge burden on a beleaguered supply chain, it isn’t just crippling the industry, it is destroying lives.”

The Government has also laid draft legislation to require companies to include their payment results in their Directors’ reports from 1 January 2026 and is consulting on further measures to improve payment practices as part of its Small Business Plan.  FIS is urging members to attend a webinar hosted on the 9th September with the Department for Business and Trade that is supporting the consultation process.

Construction News has today reported that a group of specialist contractors working for ISG have formally threatened the Ministry of Justice with legal action following payments not being forthcoming for works completed and certified undertaken as part of prison construction at the time ISG entered administration.

These contractors and a wider group have been supported throughout by FIS who held a town hall meeting for impacted businesses in November last year when it became apparent that specialist contractors in the community were not going to get the protection expected from the Project Bank Accounts.  There were 17 contractors involved in this first meeting and the group ballooned to 40 from across the construction sector that have been directly impacted.  FIS introduced Hill Dickinson to the conversation and they have been advising the group since.  On 11 August, Hill Dickinson, sent a pre-action letter to the department on behalf of six of these firms, demanding payment of unpaid money that was expected in August last year – the month before ISG’s collapse.

Commenting on the case, FIS CEO Iain McIlwee stated:

“We remain very concerned about how the supply chain of ISG have been treated and what we perceive to be a failing in the protection that should have been afforded through the administration of Project Bank Accounts.  Specialist Contractors did an honest days work and for no fault of their own find themselves again carrying the can for others.  We have tried to use all channels available to us to secure payment for this group of SMEs and are grateful to Hill Dickinson and Len Bunton for their advice throughout the process and to Lord Aberdare for championing the cause of these contractors in Government by raising key questions formally through the house.

Finishes and Interiors Sector will continue to do all we can to try to get some justice for these contractors and to ensure that lessons are not just learned, but changes are made.”.

Hill Dickinson partner Kate Kenneally, who is working on the case, said: “As the ultimate client and a party to the PBA Trust Deed, the MoJ is contractually obliged to ensure these payments are made. The failure to do so constitutes a breach of both the PBA and the associated contractual framework.”

The full article and a detailed analysis of the Prison PBA Scandal is available via Construction News here.