Demolition firm falls foul of late payment crackdown.
The issue of late payments and the potential impact upon cash flow have been a bugbear for demolition companies for about as long as anyone can remember. So it came as no major surprise when this issue was identified as one of the key concerns in the DemolitionNews Demolition Challenges Survey.
But it appears that some demolition firms are equally tardy when it comes to paying their suppliers. And now demolition contractor Rhodar has become the latest firm to be kicked off the Government’s Prompt Payment Code scheme for failing to pay suppliers on time.
Signatories to the Prompt Payment Code are required to pay 95% of all supplier invoices within 60 days.
“We will continue to challenge signatories to the code if the obligatory Payment Practice Reporting data suggests that their practices are not compliant,” says Philip King, the Chartered Institute of Credit Management (CICM) chief executive who chairs the Prompt Payment Code’s compliance boardWe are encouraged by those who have already submitted action plans to achieve future compliance, and we are working closely with those businesses to support a better payment culture.”
Nine construction companies that were previously suspended have been reinstated in the past couple of months, having demonstrated improvement.
These reinstated firms are: Balfour Beatty Group, Engie Services, Ferrovial Agroman (UK), John Sisk & Son, Kier Construction, Kier Infrastructure & Overseas, Galliford Try, Laing O’Rourke and Persimmon Homes.