Builders’ merchants put pressure on government regarding late payment

The Builders’ Merchants Federation is attempting to tackle the issue of late payment, urging the government to confront the worst offenders.

11th March 2014

Builders Merchant urge Government Late Payment ActionThe construction industry late payment issue refuses to die down. Late payment remains a significant issue along the construction industry supply chain, with builders’ merchants, suppliers and subcontractors beholden to large contractors who appear to hold all the cards. Rather than helping, early payment schemes seem only to have fanned the flames.

Builders’ merchants have now decided to take matters into their own hands, putting pressure on the government to address the issue directly and confront late paying clients. The Builders’ Merchants Federation believes that the government should be doing more to address the issue of late payment, particularly with some firms looking to make 120+ day payment terms a standard practice.

Builders’ Merchants Federation managing director John Newcomb bemoaned 120-day payment terms becoming a ‘default position’ for large-scale contractors, and said that the issue ‘has to be confronted.’

The move comes following the closure of a government consultation concerned with ending the industry’s culture of late payment, and with news of some contractors beginning to implement 24-month payment plans still fresh in the memory.

Long-term payment plans, however, were not the Builders’ Merchants Federation’s top priority, with Newcomb stressing the importance of tackling late payment as a matter of urgency.

Late payment doesn’t appear to be an issue that’s likely to resolve itself anytime soon. If you’re worried about cashflow processes, however, Integrity Trader can help. Our retail management software can help you better organise your accounts and streamline stock management processes, ensuring that you have a better understanding of your cashflow situation should the issue of late payment arise. To find out more, contact us today.
 

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