Only one-in-ten subbies being paid within 30 days

Grant Prior 11 years ago
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More than 90% of specialist contractors are still having to wait more than 30 days to get paid on public contracts.

The delays come despite Government promises on prompt payment for subcontractors.

The continued abuse of specialists has been highlighted in a major survey by pressure group StreetwiseSubbie.com.

Results show:

94.9% of specialist contractors being paid in excess of 30 days on publicly funded projects

4.7% had to wait longer than 90 days on tax payer funded projects.

On private sector projects, less than 9% of specialist contractors were paid within 30 days.

84% of specialist contractors found other government solutions had ‘no teeth’, including the Construction Act, Prompt Payment Code, and Mystery Shopper.

Barry Ashmore, MD of StreetwiseSubbie.com and ex-specialist contractor, said: “If you have ever run a specialist contracting business, you would know that delaying payment to your labour force or suppliers isn’t an option.

“The lads walk, and the suppliers put you on stop.

“While the Government pump money into infrastructure to improve the economy, this report shows the outlook for small businesses in the UK construction industry is as bleak as ever.

“If the government do not legislate quickly instead of producing meaningless reports and putting forward toothless solutions, then not only is the construction industry under threat of collapse but so is the economic growth we so desperately need.

“Small businesses are the foundation of the industry and the economy; we cannot carry on allowing them to fail… “

 

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