Nearly a third of major contractors paying faster than 30 days

Aaron Morby 1 year ago
Share

The country’s main contractors improved average payment times by a day over the last six months dispelling fears of a slide into Covid-related payment delays.

On average the 32 leading contractors paid subcontractors within 34 days, 11 days quicker than when the trade body Build UK first started collating payment data in July 2018.

But around a third of those are now paying faster than the Government target of 30 days – a new record.

The promptest payers according to official returns are: Vinci, Sir Robert McAlpine, Costain, Morgan Sindall, ISG, McLaren, Willmott Dixon, VolkerWessels and Robertson.

On average, the leading contractors now pay 94% of invoices within 60 days, up from 82% three years ago, and 79% of their invoices are paid within terms, compared to 61% in 2018.

Main contractor payment performance – source Build UK
Firm Average days to
pay invoices
% of Invoices not
paid within terms
% of Invoices
paid within 60 days
Vinci 24 15 95
Sir Robert McAlpine 24 18 96
Costain 25 19 95
Morgan Sindall 27 9 98
ISG 28 13 98
McLaren Construction 28 38 96
Willmott Dixon 29 10 99
VolkerWessels 29 24 96
Robertson Construction 29 37 95
Osborne 30 23 93
Tilbury Douglas 30 39 95
Lendlease 31 7 97
Laing O’Rourke 31 19 93
Kier 31 28 90
Amey 31 38 93
BAM Construct 32 26 96
John Sisk & Son 32 26 93
Mace 32 29 90
Wates 35 21 95
Murphy 36 23 83
Winvic Construction 37 14 97
Bowmer and Kirkland 37 27 95
Galliford Try 38 10 95
Multiplex 38 20 88
Canary Wharf Contractors 38 21 89
Bouygues 38 22 93
Balfour Beatty 38 26 92
Skanska 41 10 89
Graham Construction 42 18 90
Engie 45 1 96
BAM Nuttall 46 24 90
Seddon 49 15 96

Under the Government’s Prompt Payment Code main contractors are now required to pay small businesses within 30 days.

The tightening of the rules for smaller firms last month, means signatories to the code will need to demonstrate they have paid 95% of invoices from businesses with fewer than 50 employees within 30 days.

Contractors do not have to take into account any labour-only subcontractors the supply chain firm engages.

For larger firms, clients or main contractors are still required to pay 95% of invoices within 60 days, with the public sector held to 30 days.

Get all the construction data and work-winning information you need

The Enquirer has introduced a new construction data page offering easy-to-access market intelligence to help your business.

Alongside interactive contracts leagues and daily tender invites, it helps you make informed business decisions with coverage of breaking economic news, latest workload and tender prices forecasts.

There is also a snapshot of current freelance labour rates and a guide to the best and worst payers within the major Tier 1 contractors.

For those looking to navigate the ever-changing world of contract and employment law, lawyers at Fenwick Elliot also give you the benefit of their expert insight.

And, of course, it’s all completely free for readers.

Click here to take a look.

 

Latest news

Scaffold boss banned over covid loan abuse

Eleven-year director ban after misuse of £50,000 loan
5 hours ago

Gove issues six weeks ultimatum to sign building safety contract

Developers told to sign Government contract issued today or be banned from building homes
11 hours ago

Firm fined £120,000 for lifting two builders in a telehandler bucket

Rochdale builder Hoyle Developments fined after repeated safety breaches
3 days ago

Hunt quashes reports HS2 will stop at Old Oak Common

Chancellor says no "conceivable circumstance" where HS2 would not terminate in Central London
2 days ago

London Chiswick roundabout 24-storey tower approved

Plan for 255 flats and offices finally passed after four previous schemes failed to proceed
11 hours ago

Construction forecast to fall by nearly 5% this year

Private new build housing and RM&I to drive fall but infrastructure growth will also slow
10 hours ago

Mace wins green office block at famous Fleet Street pub site

Contractor to build new 12-storey block pioneering latest sustainable construction methods
11 hours ago

Firms readied for raft of net zero and building safety frameworks

Procurement specialist LHC to tender five mission zero retrofit and building compliance deals
3 days ago

Plans in for two Derby city centre schemes of 1300 homes

Eagle Quarter and Bradshaw Way schemes to breathe life into Derbion centre area
3 days ago

United Living names new infrastructure services MD

Former SSE Contracting operations director John Farrell joins multi-service contractor
3 days ago

Sunak promises Bill to build £100m Holocaust Memorial

Holocaust Memorial Bill will update historic legislation allow the building of a new memorial in London
3 days ago

Mace Interiors to transform Hanover Square office block

Refurbishment work to start this year on major revamp of Mayfair building
4 days ago

Garden village in Darlington gets £43m infrastructure cash

Transport and highways work will pave way for 2,000 new homes
4 days ago

Plans in for Lendlease £1.9bn Birmingham Smithfield scheme

Ambitious plans for City's old market area advance with enabling works hoped to start this year
5 days ago

TClarke on track for £500m turnover this year

Building services specialist sees 2022 revenue and profit up by around a third
4 days ago

McAlpine tenders M&E work at £340m Museum of London job

Demolition and first MEPH work packages come out to bid
4 days ago

BAM signs off on £65m Manchester First Street office job

Briggs & Forrester lined up for MEP package
4 days ago

Eurocell gets £1m insurance payout after cyber attack

UPVC giant details cost-cutting round as market weakens
4 days ago

Mace on board for £440m Manchester Airport upgrade

Green light for second phase of airport transformation programme
5 days ago

Inland Homes losses now set to hit £91m

House builder sells land as construction problems and slower sales wreck balance sheet
5 days ago

Plans in for Stoke on Trent city centre mixed-use scheme

Etruscan Square scheme consists of an arena, 300 homes, hotel and multi-storey car park
5 days ago

Landsec unveils latest £850m Buchanan Galleries plan

Subject to planning, earliest date for first construction would be summer 2024
6 days ago

Van Elle soars to record revenue in first six months

Revenue up a third to £80m at piling specialist with improved order levels ahead
5 days ago

Work starts on BSI Kitemark for MMC homes

Government backs new British Standard to lift barrier to modern methods of construction
5 days ago

Watchdog blasts “rushed” UK Infrastructure Bank

Funding deals only seen so far on broadband and solar farms projects
5 days ago

60,000 Grandfather Rights skills cards soon to be invalid

New guidance issued for how experienced workers can get new CSCS cards before end of 2024
6 days ago

Worker dies after cardiac arrest in HS2 site office

Colleagues and emergency services tried to save man after he collapsed in tunnelling office
6 days ago

Mace wins £150m life sciences centre

Construction to start in April creating 1,000 jobs on London's Euston Road
1 week ago

Redrow switches to heat pumps as standard in all new homes

House builder commits all new detached homes from this month to have heat pumps and underfloor heating
6 days ago

Gilbert Ash set for Barnfield College next phase

Contractor understood to have won latest £26m deal at Luton site
6 days ago

Contractor services