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.
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.
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