The contractor has cut its average payment time to 28 days and during the early pandemic period that fell to just 14 days.
Ryan O’Loughlin, Director at Henry Boot Construction, said: “We are very pleased to report that our supply chain payment terms have improved again this year, reflecting both our commitment and loyalty to ensuring prompt payments to our partners.
“Our average payment terms over are now 28 days and during the critical early stages of the pandemic, many of our partners were paid within 14 days.”
The company has now set a target of reducing average payment time to 21 days compared to an average of 36 days among Build UK main contractor members.
O’Loughlin said: “At the start of this challenging and uncertain period within the industry, Henry Boot Construction made an unprompted offer of early payment on one of our key contracts.
“In turn, we were able to utilise this gesture to make early payments to our own supply chain partners, providing a much-welcomed boost to confidence and financial stability throughout the supply chain.”
The move was much appreciated by subcontractors.
Nigel Pollard, Managing Director, HE Barnes said : “This serves as another great example of why we value Henry Boot Construction as one of our key customers and look forward to continuing to work together to deliver projects to a high standard for our end users.”
Shane Oldroyd, Managing Director, Oldroyd Flooring Limited added: “We have found Henry Boot Construction’s concern for its subcontractors has been nothing short of excellent during the Covid-19 outbreak and subsequent lockdown period.
“Being a relatively small company, forward cashflow was of great concern to us as our regular suppliers were unfortunately on shutdown through the initial lockdown period.”
O’Loughlin added: “Our supply chain is key to the continued success of not just our company, but hundreds of others. It is, therefore, extremely important to us to continue to enhance our payment terms for the benefit of the entire UK construction industry.”
