THE National Federation of Roofing Contractors (NFRC) is calling for ‘real consequences’ to help address the ‘endemic culture’ of late payment within the UK construction industry.
NFRC group CEO James Talman said poor payment practices continue to unfairly strain the finances of roofing and cladding businesses during a period of record insolvencies.
The trade body’s latest State of the Roofing Industry Report, prepared by AMA Research, has revealed that 45% of respondents experienced delays in getting paid in Q3, 2024. The proportion of those not paid within 45 days of a project’s completion rose to 39% – up from 29% in Q2. This follows a trend that has seen the proportion of NFRC members not paid within 45 days steadily increase since the survey began in 2020.
“Late payments put firms at risk of never being paid and numerous NFRC members experienced heavy losses when ISG collapsed,” James Talman said. “Some companies exploit the lack of accountability and consequences for late payment at the expense of those smaller businesses they subcontract to, and it harms the sector’s productivity.”
NFRC was encouraged by the launch of the new Fair Payment Code and its improvements on the Prompt Payment Code. However, Talman said the government will have to go ‘much further’ than a voluntary code and badges to combat endemic late payments that unfairly benefit those who exploit agreed terms.
The trade body added it will closely monitor the total amount of payments which are not made within a payment period and the percentage of invoices not paid within a period due to a dispute, data which will be included within new payment reporting requirements in 2025. NFRC stressed that poor performance in these areas must have a direct impact on who is awarded government contracts.
Overall, NFRC’s latest State of the Industry Report shows an uptick in workload for Members. A balance of 29% of respondents reported overall growth in workload in Q3.
