Build UK Contractor members are now taking an average of 30 days to pay invoices, according to the latest results published under the Duty to Report on Payment Practices and Performance. The 30‐day threshold for payment is seen as significant, especially for businesses within the supply chain facing cash flow pressures, which have been exacerbated by high inflation. Since Build UK began benchmarking payment performance in 2018, its tier one contractor members have reduced their average payment time from 45 to 30 days and now pay 94% of invoices within 60 days, up from 82%.
Dr David Hancock, Construction Director at the Infrastructure and Projects Authority, has praised Build UK’s “great leadership in reporting payment performance, which has clearly helped to transform behaviour in the sector”.
As part of the Payment & Cashflow Review announced at the end of last year, the Department for Business, Energy & Industrial Strategy has published a consultation on the Duty to Report Regulations to consider whether they should be extended beyond 6 April 2024 and if any amendments are required. The deadline for responses is 28 April 2023 and Build UK will be submitting a response focussed on the role of our payment performance table.
The latest business news can be found in Build UK’s Improving Business Performance update.
