New development: fair payment charter

On 22 April, a supply chain payment charter for the UK construction industry was launched by the Construction Leadership Council (CLC). The CLC was established last year to implement ‘Construction 2025: industrial strategy for construction’. Its members consist of representatives from industry and the government.

The charter sets out several fair payment commitments, which include: a 60-day maximum payment period with immediate effect, decreasing to 45 days from June 2015 and 30 days from January 2018; the issue of ‘pay less’ notices at the earliest opportunity and no later than seven days prior to the final date for payment; not deliberately delaying or unreasonably withholding payment; not withholding cash retentions by 2025; using project bank accounts on central government contracts unless there are compelling reasons not to do so and on other contracts where appropriate; making payments electronically; agreeing to be monitored for compliance by reporting against a set of agreed key performance indicators (KPIs); and agreeing to consider the performance of other firms against the KPIs when awarding contracts.

Nine firms have already signed up, including British Land, Kier, Laing O’Rourke, Skanska, Berkeley Group, Stepnell, Imtech UK, Barratt Developments and Stanford Industrial Concrete Flooring…

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