Major contractors accused of ‘endemic late payment’

Grant Prior 5 years ago
Share

Trade contractors have been highlighting “endemic” payment abuse among some tier one firms following a recent spate of specialist collapses.

Companies have been contacting the Enquirer to complain about ongoing payment dispute and delaying tactics used by some main contractors.

One leading specialist trade body said: “Our members feel that payment abuse is endemic with certain tier one contractors.

“Specialists are funding work undertaken for nearly six months when you add up all the tricks and turns the tier ones use.

“Rather than 60 days payment, six months free credit and unauthorised overdraft paints a truer picture of the construction industry in some sectors.”

Specialists have also highlighted the growing use of Pay Less Notices, contra-charges and contract amendments.

One steel specialist said: “Often if we apply for erection being 80% complete it is common that the main contractor values it at 70% with little to no science behind it, just because they can.

“We then have the option to either argue the case with them to get a more reasonable notice, which would have slowed the payment down, or just accept their assessment in the hope that the money will be received on time.”

A high turnover of quantity surveyors at main contractors was also flagged as a problem.

One subcontractor said: “Across two projects we have dealt with over ten different QSs.

“The new person coming in had to get up to speed and this created delays.

“QSs were leaving because they were not comfortable with the way they were being told to operate by finance departments at head office.”

 

Latest news

Multiplex starts London 36-storey ‘hanging gardens’ tower

Piling starts on Square Mile's £400m 50 Fenchurch Street tower
3 hours ago

Birmingham to pick five firms for £265m homes retrofit plan

Firms to be charged annual fee to cover Council cost of promoting energy efficiency
4 hours ago

Arup and Binnies to design Abingdon reservoir

Embankment trial will help consultants to draw up £1.5bn reservoir design
5 hours ago

Subdued market sees profit warning from SIG

Insulation and building products supplier pushes back timing for market turnaround
5 hours ago

Developer CLS to advance major new Vauxhall scheme

Citadel Place scheme will consist of 400 student rooms and 200 flats
4 hours ago

Tarmac trials electric tipper truck

Pioneering EV tipper being put through its paces
4 hours ago

Changing of the guard at HBF

Long-standing Chief Executive Stewart Baseley steps back to become chairman
3 hours ago

Early bond release key to averting industry surety crisis

Contractors must put pressure on clients to release bonds promptly
3 days ago

Over 1000 building safety cladding retrofits completed

25% of safety retrofits finished seven years after Grenfell disaster
3 days ago

Steel import delays make Rangers miss kick-off

Construction work at Ibrox will not be finished by start of next season
4 days ago

Lidl looking for new contractors for store building plans

Sign up for events in Newcastle, Glasgow, Birmingham and Southampton
3 days ago

Utility firm GTC revs up for ground source heat pump era

Contractor and heat pump maker strikes ground-breaking deal
3 days ago

Amey switches kit supplier to Speedy from HSS

New plant and equipment hire deal worth £25m a year
4 days ago

Clients under spotlight after bond bombshell

Contractors call for action to avoid project delays
4 days ago

M&E specialist Lorne Stewart falls into the red

Parent group suffers £2.8m loss in face of cost inflation and insolvencies
4 days ago

Four men rushed to hospital after site accident

Eye-witnesses report a wall was knocked over on Edinburgh site
5 days ago

World’s tallest scissor lift set for UK sites

Hire Safe Solutions partners with Dingli to supply lift with working height of 37 metres
4 days ago

Barhale wins £36m East London sewer remediation

Northern Outfall Sewer in West Ham runs above railway lines in the city
4 days ago

Weston Homes thumbs-up for £220m Essex homes scheme

Colchester 600-home Viridis scheme gains outline consent
4 days ago

Balfour seals £192m deal for trio of Scottish substations

Work to start this summer to enhance electrical transmission in Argyll
5 days ago

Construction bond bombshell as major player quits market

QBE currently provides cover for 20 of the industry's 30 biggest contractors
5 days ago

United Utilities names another 18 winners for £2.7bn water spend

Water giant cuts out large management contractors in latest spending round
6 days ago

Green light for £130m Dundee Eden project

Former gasholder site to be transformed into green house
5 days ago

Four tower scheme in Glasgow gets green light

Go-ahead for major mixed-use scheme at Central Quay
5 days ago

‘Green collar’ construction workers earning £134,000

Cost consultant T&T says insulation and heat pump trades earning £70 an hour in London
5 days ago

£65m Trafford Waters resi blocks approved

X1 Developments plans over 200 homes in 13- and 8-storey blocks
5 days ago

Over 100 firms win £1.5bn ICN housing framework

Great Places Housing Group names key partners for new homes programme
6 days ago

Steelwork firm went down owing £4.5m to suppliers

Subcontractors left holding unpaid invoices from SH Structures
6 days ago

Scottish civils firm to buy stake in piling specialist

Advance Construction in talks for 25% stake in Northern Piling Ltd
6 days ago

RSK secures £500m for fresh acquisitions spree

Acquisitive group aims to buy another 200 businesses by 2030
7 days ago

Contractor services