Duty to Report on Payment Practices and Performance enables Build UK to present a clear and comprehensive picture of payment within construction for the first time
Build UK has published information on the payment performance of its Contractor members using data submitted under the Duty to Report on Payment Practices and Performance
The payment performance information revealed that none of the Tier 1 members of Build UK pays its supplier within 30 days average, despite them all having committed to doing so.
Identified as a specific action within the recently published Construction Sector Deal, Build UK members have collectively agreed for Build UK to benchmark them on both the average time they take to pay invoices and the percentage of their invoices paid beyond terms.
The Duty to Report, which requires all large companies to report on their payment performance every six months, enables the supply chain to make more informed decisions, it demonstrates a real commitment to addressing this long-standing issue and will help to drive good practice.
The Government has hailed the move with the need for a more sustainable business model and improved payment practices set out within the Sector Deal published earlier this month.
Minister for Implementation Oliver Dowden CBE MP said: “Government is leading by example in fair payment practices. All public sector organisations are required to pay undisputed invoices in 30 days and ensure this payment term is passed down the supply chain.
“Build UK is leading the industry by publishing its members’ payment performance. I hope to see more of these initiatives being led by industry to help us drive a positive change in culture and help eliminate poor payment practices.”
Build UK Chief Executive Suzannah Nichol MBE said: “The creation of Build UK offered the industry the opportunity to sit around the same table and work together to tackle the issue of payment, which continues to hold the industry back from realising its true potential.
“Transparency is essential to changing the industry culture around payment and the Duty to Report has provided a consistent means of comparing performance. This bold first step by Build UK and its members shows that the leaders within the sector are serious about changing the way they do business.”
