Construction industry warned about late payments

construction

 

The construction industry has been given a cautionary reminder that new rules on paying their suppliers on time come into force in September. From 1 September 2019, the new legislation means that large companies may be prevented from winning government contracts if they do not pay 95% of their invoices within 60 days.

 

Speaking at the Royal Institution of Chartered Surveyors’ annual construction conference last week Cabinet Office minister Oliver Dowden said: “Small businesses are the back-bone of the UK’s economy, so it’s vital that we support them – and one of the key elements of that is making sure they are paid on time. For many small businesses, the difference between getting paid in 60 days and 90 days can be vital. That is why I have warned big businesses they must do their bit and I’ve been clear that they could lose out on valuable government contracts if they don’t.”