Major rail contractors promise fair payment

Aaron Morby 12 years ago

Network Rail is enforcing a fair payment regime throughout its supply chain covering all future construction and maintenance work.

Its tier one contractors, engineering firms and key suppliers have signed a 28 days payment and no retentions pledge that promises to transform practices in the rail industry.

The Fair Payment Charter, which will be launched today, will ensure that Network Rail’s Tier 1 contractors are paid 21 days after payment valuation date and their supply chain 7 days after that.

Previous Network Rail was paying at an average of 58 days.

Hated retentions will be abolished unless client Network Rail holds one from the main contractor, which would be on isolated jobs where it is deemed necessary.

The move is a huge breakthrough for fair payment in the industry as Network Rail stands as the biggest client outside of main Government spending departments to encourage its contractors to sign up to the pledge.

And crucially there is agreement that anything resembling pay when paid terms will not be employed in contracts.

Sub-subcontracts will also be expected to honour prompt payment terms, helping to safeguard cashflow throughout the huge rail supply chain.

All firms that have signed up to the Charter have agreed that deliberate delays, late payment or unjustified withholding of payments is “ethically unacceptable”.

All of Network Rail’s main contractors, engineering consultants and top level suppliers have signed the agreement.

    Fair Payment Charter

Firms signed up
Balfour Beatty Civil Engineering
Balfour Beatty Rail Projects
BAM Nuttall
Carillion Construction
Colas Rail
C Spencer
Delta Rail
Galliford Try
J Murphy
Kier Construction
Laing O’Rourke
May Gurney
Signalling Solutions Limited
URS Scott Wilson
Vinci Construction
Volker Fitzpatrick
Volker Rail

Tim Gorman, commercial director at Balfour Beatty Rail, said: “We welcome the charter and will fully embrace its intent.

“Payment performance to the supply chain is a major factor in shaping the quality and depth of the relationship networks that are used to deliver projects.

“As we move to ever more collaborative forms of supply chain relationships, compliance with the charter will demonstrate our commitment to protecting the financial security of our supply chain providers and reinforce our core values of integrity and respect.”

Suzannah Nichol, chief executive of the National Specialist Contractors Council, said: “NSCC is delighted to see Network Rail, a high-profile client with a substantial portfolio of construction work, setting the standard for fair payment throughout its supply chain.

“Facilitating collaborative working and providing certainty of cash flow will enable specialist contractors to do what they do best and focus on the efficient and cost-effective delivery of the country’s rail infrastructure.”

Latest news

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
44 mins ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
7 hours ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
4 hours ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
6 hours ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
7 hours ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
23 hours ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
7 hours ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
23 hours ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
1 day ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
7 hours ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
1 day ago

Wates-owned SES restructure delivers record profit and revenue

Building services contractor revenue soars to almost £300m
1 day ago

25 groundworks firms win £100m Places for People deal

M&J Evans, Carmac and Churngold Construction feature in housing association's line-up
1 day ago

Energy efficiency firms angry at lack of CITB support

SME contractors funding bid "does not meet the current criteria for supporting productivity or EDI"
1 day ago

£400m South Cambridge science park approved

Outline approval allows former sewage treatment works to be demolished
1 day ago

McLaren gets green light for 45-storey Leeds tower

Landmark Wellington Square scheme will see 464 flats built with 360,000 sq ft of offices
4 days ago

Heavy rain causes 1.9% construction output fall

Hopes remain undampened of a resi-led recovery this summer
4 days ago

Taziker restruture to return to profitability after £1.2m loss

Founders bought the business back from private equity after last year's loss
4 days ago

£220m London wharf homes scheme approved

285 homes to be built beside protected Albert and Swedish Wharves in Wandsworth
4 days ago

Major project veteran named civils director for Sizewell C

David Speight previously worked on Hinkley, Heathrow and HS2 client teams
4 days ago

Morgan Sindall lands £19m Milton Keynes hospital job

Crane lifts to be carefully co-ordinated to ensure air ambulance remains active
5 days ago

Clancy bolsters civils leadership team

Daniel Tonkin and Simon Hyams join as operation directors of water and infrastructure
5 days ago

Balfour names new project boss for HS2’s super-hub station

Steve O’Sullivan replaces Nigel Russell who was promoted to CEO of Balfour's HS2 ops
5 days ago

Buckingham Group supply chain hit doubles to £256m

Total owed to unsecured creditors soars as surety providers finalise claims
5 days ago

Builders demand an end to police plant bans

Call to suspend all embargoes on moving mobile cranes and large site kit
5 days ago

Green light for £65m Blackpool multiversity campus

Education campus of 350,000 sq ft will be delivered in phases
5 days ago

Vinci signs £138m Sheffield steel forge expansion deal

Sheffield Forgemasters signs landmark contract after two years of pre-construction works
6 days ago

McAlpine hires HS2 programme boss to head defence arm

Armed forces logistics expert Mike Hickson takes role as MD of defence
6 days ago

£200m carbon capture plan for Deeside site

Energy from waste operator enfinium looking to invest in North Wales plant
5 days ago

McAleer & Rushe promotes five staff to contracts directors

Design and build contractor targets £500m revenue next year
6 days ago

Contractor services