THE Specialist Engineering Contractors’ (SEC) Group has welcomed Build UK’s decision to publicise the payment performance of its leading member firms – but expressed concern at the “disappointing” figures revealed by the research.
Build UK member companies comprise the largest businesses in the UK construction industry. However, none of the published figures showed payment times of less than 30 days.
SEC Group said this means these firms would be unable to comply with the law (under the Public Contracts Regulations 2015) applicable to payment times on public sector works. The organisation added that they are also failing to comply with the requirement under the Supply Chain Payment Charter to discharge payments within 30 days.
SEC Group CEO Rudi Klein said, “I am concerned that the existing legal requirements and Charters are being ignored. We are urging the Government to put in place project bank accounts on all public sector projects. These will enable SMEs in these companies’ supply chains to be paid within 12-15 days; everybody gets paid from the same “pot” without cash having to travel along the cascading layers of contracting.”