FPDC, the specialist dry lining, plastering and ceiling contractors trade body, has welcomed the new payment charter. The charter says that clients will be encouraged not to give contractors work unless they meet fair payment standards under the terms of the proposed supply chain payment charter.

The charter, agreed by the Construction Leadership Council, intends to encourage clients and contractors to sign up to 11 fair payment commitments, including standard 30-day payment terms from January 2018.

The charter also sets out stages before 2018: terms of 45 days from June 2015, and 60 days with immediate effect. Other commitments mentioned include not withholding cash retentions, not delaying or withholding payment, and making payments electronically.

The success of the new supply chain payment charter will depend on how well it is enforced according to Steve Halcrow, director at FPDC. He said: “The charter should apply up and down the supply chain and to deliver change it is essential that it has teeth that will penalise those who do not comply. Without teeth it is unlikely that anything will change.”

Members of the Construction Leadership Council include Barratt Developments, British Land, Berkeley Group, Kier and Laing O’Rourke. The council is co-chaired by business secretary Vince Cable.

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