Seven construction companies, including Kier and Seddon, have been suspended from the Prompt Payment Code (PCC) for failing to pay suppliers on time
Eurovia and McNichols Construction Services are also among those that have failed to honour their commitment to pay 95% of all supplier invoices within 60 days.
The code is administered by the Chartered Institute of Credit Management (CICM), who are independent of government, on behalf of the Department for Business, Energy and Industrial Strategy (BEIS). Signatories pledge to uphold its best practice for payment standards to end the culture of late payment.
All of the businesses, however, are engaging with the CICM and have already submitted action plans towards achieving compliance.
A further five businesses, including Interserve Construction, Costain and Kellogg Brown & Root, have been reinstated to the code having demonstrated compliance for at least the last two consecutive months.
The seven suspended companies are:
- Eurovia Infrastructure Limited
- Kier Integrated Services Limited
- Kier Infrastructure and Overseas Limited
- Kier Construction Limited
- Kier Highways Limited
- McNicholas Construction Services Limited
- Seddon Construction Ltd
The five reinstated companies are:
- Alun Griffiths
- Costain Limited
- Kellogg Brown & Root Limited
- Interserve Construction
- Severfield (Design & Build) Limited
The Prompt Payment Code’s Compliance Board, chaired by CICM’s chief executive Philip King, regularly reviews the status of organisations to ensure they are upholding their commitments and prevent those failing to pay suppliers.
Businesses suspended from the Prompt Payment Code are invited to produce an action plan that leads to an improvement in payment performance and are reinstated to the code when they demonstrate compliance.
King said: “We will continue to challenge signatories to the Code if the obligatory Payment Practice Reporting data suggests that their practices are not compliant.
“We are encouraged by those who have already submitted action plans to achieve future compliance, and we are working closely with those businesses to support a better payment culture.”
Small Business minister, Kelly Tolhurst, added: “We want to make sure that the UK is the best place in the world to work and start a business. Tackling late payments will ensure we level the playing field for small businesses so they can grow and thrive.
“The vast majority of businesses pay their bills on time and it’s encouraging to see some companies engaging with improved payment practices, allowing them to be reinstated on the Code. However, more needs to be done, and today’s action shows we are not afraid to crack down on those who do not pay suppliers on time.”