All’s fair in love and war (and payment?) — fair payment charter: the voluntary solution
The government industrial strategy, Construction 2025, comments that there is ‘a significant problem with cash flow in the industry… late payment is more of an issue in construction than in other sectors’. In recognition of this problem, the government has set out that its ambition for 2025 is for the ‘construction industry’s standard payment terms [to be] 30 days and that retentions are no longer withheld’.
The Construction Leadership Committee published The Construction Supply Chain Payment Charter on 22 April 2014, which sets out 11 commitments that those companies that sign up to it must comply with. Those commitments include:
- A 60-day maximum payment time with immediate effect;
- Decreasing to 45-day maximum payment time by June 2015; and
- Eventually reducing to 30-day maximum payment time by January 2018.
The charter ‘applies to all parties to construction contracts with the aim of helping to create a more collaborative culture and to ensure a strong, resilient and sustainable supply chain’…
Click on the link below to read the rest of the Nabarro briefing.
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