Build UK has revealed the worst and best payers among its members.
Just two out of 114 companies paid all their invoices within agreed terms. There were also some very late payers, including Rolls-Royce.
Rolls-Royce took an average of 70 days to pay and settled 26% of invoices within 60 days.
Briggs & Forrester took an average of 63 days to pay an invoice and paid 38% of invoices within 60 days.
A number of other companies took more than 60 days to settle more than half of their invoices. These included: Gap Hire, 43% of invoices paid within 60 days; Enigma Industrial Services, 44%; Van Elle, 46%; and TClarke, 46%.
Sector improvement
Despite the examples above, Build UK said overall payment times have improved to 30 days. Five years ago tier 1 contractors were paying within an average of 45 days.
Paying within 30 days is seen as significant as it can help relieve cash flow pressures within the supply chain.
Build UK deputy chief executive Jo Fautley said this was “proof that the sector is changing the way it does business”, though she said there was “still room for improvement”.
Certain businesses have a Duty to Report payment information. The government review into the duty said Build UK’s approach was a “good model” for other trade organisations to adopt.
Faster payers
The two firms that paid all their invoices within agreed terms were Parkeray Interiors and Stanmore, which paid within 34 days and 15 days on average respectively. These two firms also paid all their invoices within 60 days, as did Lendlease, which was also a fast payer, settling up within 21 days on average.
Other speedy payers included: IM Properties, 15 days; ISG, 16 days; British Land, 16 days; Amey, 17 days; and Costain, 19 days.
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This is something we’re seeing throughout construction – delayed payments and no end of excuses…. it’s got to the point in some sites where staff are walking off site because they’re not being paid.