The Government is consulting on further legislative measures to improve payment practices and make sure small businesses are paid on time as part of its Small Business Plan. Build UK is developing a response and will be holding a meeting for members to share their views.
As the Painting and Decorating Association is a Build UK member, PDA members (or an appropriate representative from your organisation) are invited to join an online (Zoom) meeting on Tuesday 30 September from 9:00am – 10:30am to share your views on the proposed measures. Please email them to confirm your attendance.
The consultation is an opportunity to build on the work that has been undertaken to improve payment performance in the construction sector to date.
The consultation proposes a broad package of measures, which will impact the whole construction supply chain.
Consultation Proposed Measures
- Requiring audit committees to make recommendations on payment performance to company directors before results are published
- Introducing maximum payment terms of 60 days, which may be reduced to 45 days after five years
- Introducing a deadline of 30 days for disputing an invoice after receipt
- Making it mandatory to pay interest of 8% above the Bank of England base rate on late invoices
- Requiring large businesses to report on the payment of statutory interest
- Giving the Small Business Commissioner (SBC) powers to impose financial penalties on large businesses that consistently pay late
- Introducing additional powers for the SBC, including verifying the data submitted under the Reporting on Payment Practices and Performance Regulations
- Specific to construction, either prohibiting the use of retentions or introducing requirements for retentions to be protected in a separate bank account or through a guarantee
Build UK believes that any new measures must work holistically within the current legislative framework and that the existing reporting requirements should be effectively enforced to improve transparency for the supply chain and highlight those businesses that pay late.
Build UK encourage you or a representative to attend the meeting on 30 September.