Nearly 70% of subcontractors on public sector construction jobs are still not getting paid within 30 days despite Government promises to push through bills.
Research by the National Specialist Contractors Council has revealed that 69% of subbies were not paid within 30 days by major contractors on public schemes.
The shock figure comes just two weeks after Cabinet Minister Francis Maude promised to put pressure on major contractors to pay their supply chain.
Across the whole of construction only 2% of suppliers were paid within the 30 day during the second quarter of 2011 – down from 7% in the previous three months.
NSCC chief executive Suzannah Nichol said: “We are getting lots of complaints about tier one contractors not passing money through the supply chain, not releasing retentions and some are starting to play tricks with under valuing so they don’t have to pay out to subcontractors.
“This is because tier one contractors are feeling the squeeze now.
“If they squeeze the very life out of suppliers by withholding cash, they will no longer have a supply chain to do the work.”
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