Fresh hope for prompt payment for contractors with fair payment charter.

After a meeting in May between members of the ECA and the construction minister, Michael Fallon MP prompt payment was declared a high priority in the Industrial Construction Strategy (ICS) released in July, with a commitment to the creation of a fair payment charter, solely for the construction industry, by the end of the year.

This is a welcome development after an ECA survey found that Main Contractors failed to pass on prompt payment terms. In the survey 30% of respondents reported that they have had to wait 60 days or more to be paid by Main Contractors when working on private sector projects.

Steve Bratt, ECA group CEO is quoted as saying that “Tackling late payment is about the future of our industry and economic growth. Companies that could grow are being stopped by late or non-payment. If businesses can’t grow, it’s not only bad for our industry but bad for Britains economy.”

The ECA seek to engage with the Institute of Credit Management, which has been tasked with developing the Fair Payment Charter. The aim is that the intent of the Late Payment of Commercial Debt regulations, which came into force in March 2013, is effectively applied. Watch this space.