Subcontractors will be charged 2% APR interest to get their money two weeks ahead of Willmott Dixon’s usual payment terms of 42 or 30 days.

The interest payments only apply to the “speeded-up” two week period.

The “EarlyPay” scheme will start in May and will be available to Willmott Dixon’s 650-strong list of Category “A” suppliers.

Carillion and Balfour Beatty already operate similar schemes which initially sparked an outcry but have now been welcomed by many subcontractors because they provide certainty of payment.

Willmott Dixon said its scheme is “completely voluntary” and will be run in association with Lloyds Bank.

Group Chief Executive Rick Willmott said: “It is absolutely  in our interests that our supply chain partners are successful, remain liquid and are profitable.

“Healthy cashflow is an essential element of our industry’s ability to operate and we have deliberately created an early payment system that is both transparent and advantageous to our suppliers should they choose to opt in.

“I believe EarlyPay is exactly that and if asked would Willmott Dixon sign up to a similar scheme with the same terms and conditions, it would be an unequivocal yes.”