It was recently reported in The Construction Enquirer, that the country’s main contractors improved average payment times by a day over the last six months dispelling fears of a slide into Covid-related payment delays.
On average the 32 leading contractors paid subcontractors within 34 days, 11 days quicker than when the trade body Build UK first started collating payment data in July 2018.
But around a third of those are now paying faster than the Government target of 30 days – a new record.
On average, the leading contractors now pay 94% of invoices within 60 days, up from 82% three years ago, and 79% of their invoices are paid within terms, compared to 61% in 2018.
The tightening of the rules for smaller firms last month, means signatories to the code will need to demonstrate they have paid 95% of invoices from businesses with fewer than 50 employees within 30 days.
This of course is great news for the industry. As Royal Clean have worked and continue working with some of these leading contractors in London, we have indeed seen an improvement in average payment times. For our smaller clients, they have also improved but there’s still definitely jobs for our Accounts team to continue chasing for payments.
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