The sharp improvement in average payment of invoices among the 34 leading contractors quashes fears the industry was set to return to poor payment practices as a result of the pandemic

Much of the improvement is being driven by a cluster of contractors paying much faster at 25 days or less.

There are also now fewer outliers clinging on to draconian payment regimes as the Government seeks to roll-out construction playbook best practice.

Main contractor payment days on average improved by four days over the last six months to 30.4 days, some 15 days quicker than when trade body Build UK first started collating payment data in July 2018.

Despite seeing a strong recovery in profits, house builders’ payment records now lag main contractors.

Among the volume builders Barratt, Redrow and Persimmon are paying under 30 days according to their reported accounts.

Jo Fautley, Build UK Deputy Chief Executive, said: “Our benchmarking of payment performance has resulted in significant changes in behaviour within the industry.

“The results over the last three years show that construction is serious about changing the way it does business and Build UK members are leading the way.”