Site rows erupt as O’Rourke changes payment dates

Grant Prior 8 years ago
Share

Subcontractors have been left fuming after Laing O’Rourke suddenly decided to change its payment terms this month.

The Enquirer understands that O’Rourke has switched its terms to a single payment run on the 28th of every month.

That has outraged suppliers who have been used to weekly payments or ad-hoc staged payments.

It is understood the diktat has come down from the Dartford head office and is also proving unpopular with O’Rourke site teams left to deal with angry subcontractors.

One supplier said: “We were due to be paid earlier this month but nothing appeared in our account.

“We tried to speak to O’Rourke to see what was going on but had no official letter or email confirming the sudden change.

“It was only when we demanded to know where our money was that the whole story came out from the site team who seem almost as upset as us.”

O’Rourke said the issues were down to the introduction of a new accounting process.

Another subcontractor said: “It’s caused a real stink on our job and the people like the dryliners who get paid weekly are threatening to walk off.

“This is totally wrong. We had signed and agreed payment terms then they suddenly make this change.

“I’d love to see whoever thought this was a good idea at head office to come down to site and explain it.”

A Laing O’Rourke spokesperson said: “Laing O’Rourke remains committed to the prompt payment of its subcontractors and suppliers.

“In November, the company introduced a new accounting process and during this introductory month we are aware that some payment dates were moved whilst we realigned them to coincide with the month end.

“Wherever possible, we have worked closely to address issues with any affected subcontractors during this transition period.

“We apologise for any inconvenience caused during November.”

Latest news

Wates wins former Daily Mail printworks transformation

British Land advances major cultural venue at London’s Canada Water
18 hours ago

Mace poaches Ramboll chief to be Head of Engineering

Martin Feakes will develop civil and structural engineering offer at Mace
17 hours ago

Subcontractors form alliance for major civils jobs

Trio of specialists join forces to collaborate and offer Tier 1 contractors a turnkey solution
21 hours ago

Fear of supply chain failures boosting collaboration

Procurement survey also reveals project bank account use is rising
21 hours ago

Wates sets up business to target 160,000 mouldy social homes

Healthy Homes service will be offered to social landlords across England
22 hours ago

Higgins wins £75m Peabody Passive House job

Latest phase of Deptford Landings to start construction
21 hours ago

Contractors and unions agree Sizewell C working deal

New deal offers improved sick pay and parental leave over Hinkley Point deal
1 day ago

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
2 days ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
2 days ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
2 days ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
2 days ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
2 days ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
2 days ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
5 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
5 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
5 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
5 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
5 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
5 days ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
6 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
6 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
7 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
6 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
6 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
6 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
7 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
6 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
7 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
7 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
7 days ago

Contractor services