NAO launches probe into subcontractor payments

Aaron Morby 12 years ago
Share

The Government’s independent spending watchdog is launching its first official probe into whether subcontractors are really being paid on time on public contracts.

Since the 2010 Budget, all new central government contracts are required to include a provision requiring subcontractors’ invoices to be paid within 30 days.

But there have been several complaints that some main contractors have attempted to side-step prompt payment commitments.

Several frustrated subcontractors have resorted to complaining to the Government’s mystery shopper service, which allows firms to name and shame poor payers.

The National Audit Office has called on subcontractors with both good and bad experiences on jobs to complete a survey.

Its findings will inform an in-depth report to Parliament this Autumn and may be the subject of a hearing by the House of Commons Public Accounts Committee.

The main aim is to nail whether Government measures to speed payments down the supply chain on public works have been successful.

Auditors also hope to identify ruses that may be hindering prompt payment like disputes over value or quality of work.

It also aims to identify whether the Cabinet Office’s Mystery Shopper Service working as a way of naming slow paying main contractors.

The coalition Government has pledged to tackle late payment head-on.

But a lot of the threatened heat on the industry has been dispersed by the Construction Leadership Council’s voluntary industry payment charter covering private sector work.

This commits firms to reducing payment terms to 30 days from January 2018 with interim stages of 45 days from June 2015 and 60 days with immediate effect.

So far just two main contractors Laing O’Rourke and Skanska have signed up to the commitments. But major subcontractor trade bodies are backing the initiative.

A Government pledge to force large companies to publish their payment records has now been kicked into the long grass after Business Secretary Vince Cable admitted needed legislation would not be introduced before the next election.

Click for anonymous payment survey. To be completed by 18 July

 

 

 

 

Latest news

Winvic wins £340m M&S mega shed at DIRFT

Low-carbon Midlands 1.3m sq ft twin sheds set to anchor food growth plans
11 hours ago

Father-of-six dies in demolition site tragedy

Fatal accident while demolishing flats in Renfrewshire
8 hours ago

Bidders day set for £4.5bn Southern Construction Framework

Around 20 contractors brace for fight to retain places on sixth-generation mega deal
15 hours ago

Facade specialist Permasteelisa (UK) hit by third year of losses

Legacy projects, and fixed-price contract pressures continued to bite
15 hours ago

“Future of construction” firm in administration

Versarien fails to strike a solvent sale for business
3 days ago

British Land CEO to join warehouse developer

Simon Carter to leave after five years at the helm
15 hours ago

Paddington life sciences tower moves into planning

16-storey hub planned beside St Mary's Hospital in London
16 hours ago

Balfour secures £900m Midlands highways upkeep deal

Firm beats rival M Group and Ringway bids for new combined council deal
4 days ago

Skanska slides 4,200 tonne railway bridge into place

Watch time-lapse video of major civil engineering feat
15 hours ago

Student rooms builder cancels London and defers Bristol projects

Unite cans £147m Paddington scheme but pledges £100m share buyback
4 days ago

Mace crowned annual contracts league champion

Hoard of big wins in the capital secures 2025 title for most work won
4 days ago

Offsite specialist Merit went down owing suppliers £17m

Assets bought by firm newly formed by former directors
4 days ago

Leeds United set to kick off stadium expansion this summer

New West and North stands to deliver 53,000-capacity ground
4 days ago

Bovis hires Sisk healthcare chief to scale up NHS work

Nadeem Chaudhry joins as UK head of health
4 days ago

Muse picked to steer 10,000-home Bristol Temple Quarter plan

Major housing and commercial build-out planned for 135-acre station neighbourhood
5 days ago

Paul Bentley joins Mott MacDonald executive board

JN Bentley director steps up after driving water work growth
4 days ago

£300m Wales indoor ski resort clears final planning hurdle

UK’s longest indoor ski run heading for Merthyr
5 days ago

Former Carillion finance directors fined £371,700

Richard Adam and Zafar Khan accept fines for misleading statements in run-up to collapse
5 days ago

Andrew Scott forecasts record-breaking year ahead

Order book strength underpins £120m revenue forecast
5 days ago

£80m London housing scheme unlocked after flip to 100% social

Extra grant funding pushes 228-home Bromley Blenheim Centre scheme over the line
5 days ago

Construction buyers see better times ahead

Business activity hopes hit five-month high
5 days ago

Collapsing wall knocks labourer down stairwell

Contractor fined £60,000 after injured worker faced a month in hospital
5 days ago

McAlpine tipped for £150m West End office revamp

Funding deal paves way for start at 125 Shaftesbury Avenue
6 days ago

Site acquired in Chichester for new Premier Inn

Construction to start this Spring
6 days ago

Multiplex signs £250m London Wall construction contract

Main contract to start after year of enabling works by Erith
6 days ago

Clegg clears Gateway 2 for £46m Sheffield flats

BSR approval unlocks January start on 12-storey build-to-rent scheme
6 days ago

Cardo snaps up Scottish roofer Faskin Group

Paisley roofing specialist joins growing national contractor
6 days ago

Four-storey rooftop extension approved for City office-to-hotel

London City listed Clement's Lane building to become 180-key luxury hotel
6 days ago

£230m win double sets McLaughlin & Harvey up for rebound year

Sheffield Forgemasters machine shop and Tyne ferry works fire up 2026 start
6 days ago

Kier overhauls top team as infrastructure arm launched

New leadership line-up to drive growth across core markets
1 week ago