UK Construction Tries Again With Prompt Supplier Payment


The U.K. may have its Prompt Payment Code, but members of the construction industry say they need to take the initiative more seriously.

Reports on Thursday (Aug. 11) revealed that the Construction Leadership Council, a government group, has adopted the Construction Supply Chain Payment Charter (CSCPC).

The only difference between the CSCPC and the PPC, however, is that members of the construction industry can use the CSCPC logo to show their support for faster supplier payments, reports said.

Several construction companies have already signed the agreement, promising payment terms of either 30 or 45 days to their suppliers as the nation explores how to help small vendors handle payment terms from their corporate buyers that sometimes extend months.

All agreed that they will commit to 30-day payment terms starting Jan. 2018.

Among the list of agreements is a promise to make full, correct payment, to not deliberately delay payment and to make other efforts to notify suppliers of discounted payments and other payment practices that may impact vendors.

The companies said they also agree to “make payments electronically unless agreed otherwise.”

So far, 19 organizations in total have signed up to the CSCPC.

“Most major construction companies eventually signed up for the Prompt Payment Code, after much foot-dragging,” the council said in its announcement. “Larger refuseniks included Clugston and Severfield. However, anecdotal evidence suggests that there is only a sporadic correlation between signing the code and actually paying suppliers promptly.”

It is unclear whether the CSCPC will have a different outcome in terms of affecting whether firms that have agreed to the charter will actually make good on the promises they’ve made.