A study by the Electrical Contractors’ Association has confirmed that late payment for subcontractors is still endemic across construction.

Nearly a third of ECA members surveyed said they have to wait 60 days or more to be paid by main contractors on private sector projects.

Things are little better on central Government projects where attempts to improve payment times aren’t working.

Only 8% of those surveyed said the main contractor regularly passes on the Government’s best practice payment terms of 30 days.

Steve Bratt, ECA Group CEO said: “At worst, late payment kills; at best, it severely hampers growth.

“Tackling late payment is not just a question of survival today. It’s about the future of our industry and economic growth.

“I am hearing from members who have hit a glass ceiling; they could grow and invest in new technologies and staff, but as a result of the risk of late or non-payment have made a strategic decision not to.

“If businesses can’t grow, it’s not only bad for our industry but bad for Britain’s economy.

“Late payment is like any other form of discrimination or abuse, and we should stop tolerating it.”