Kier Highways and Seddon Construction have been reinstated to the Prompt Payment Code following improvements in payment practices to their supply chain
Kier Highways, Seddon and Screwfix engaged with the Prompt Payment Code Compliance board by outlining how they plan to achieve compliance and meet the commitments of the code.
Prior to being suspended from the Prompt Payment Code, Kier Highways was paying 79% of invoices within 60 days and is now paying at 98%.
Screwfix was paying 18% of invoices within 60 days and is now paying at 91%.
Seddon Construction was paying 19% of invoices within 60 days and is now paying at 92%.
Seddon and Screwfix are currently working towards paying 95% of all invoices to meet the code criteria.
‘More important than ever’ to honour payment commitments
Interim small business commissioner, Philip King, said: “A growing number of businesses have signed up to the code in recent months and this shows the importance companies place on being signatories to the code.
“The current pandemic crisis is placing an extraordinary pressure on the cashflow of businesses and it is more important than ever that code signatories honour their payment practice commitments.
“I welcome other businesses to become signatories and help change the culture of late payments which will stimulate the economic recovery of UK businesses.
“It is encouraging to see suspended signatories now adhering to the requirements of the code and being reinstated but the companies who continue to treat their suppliers unfairly remains a concern.
“I will continue to challenge signatories if the obligatory Payment Practice Reporting data, or a specific challenge from a supplier or representative body, suggests that their practices are not compliant with the code.”
Andrew Davies, chief executive at Kier, commented: “Working collaboratively with BEIS and the office of the small business commissioner we are pleased our actions have resulted in this latest progress for Kier Highways.
“Following the reinstatement of other Kier businesses onto the Prompt Payment Code we remain committed to working proactively and in partnership with our suppliers.”