{"id":68682,"date":"2019-12-04T10:04:08","date_gmt":"2019-12-04T10:04:08","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=68682"},"modified":"2023-03-11T11:14:31","modified_gmt":"2023-03-11T11:14:31","slug":"late-payment-issues-solving","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/late-payment-issues-solving\/68682\/","title":{"rendered":"Late payment problems in construction need solving, says BESA"},"content":{"rendered":"<h2>David Frise, CEO of the <a href=\"https:\/\/www.thebesa.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Building Engineering Services Association<\/a> (BESA), has urged the government to solve the late payment problems that challenge construction supply chains<\/h2>\n<p>A recent survey carried out by the BESA and the Electrical Contractors&#8217; Association found that <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/late-payment-besa\/67386\/\" target=\"_blank\" rel=\"noopener noreferrer\">nine out of 10 small business owners were suffering from stress<\/a> and other mental health conditions because of late payment.<\/p>\n<p>Frise told delegates at the <a href=\"https:\/\/www.millenniumhotels.com\/en\/london\/millennium-gloucester-hotel-london-kensington\/\" target=\"_blank\" rel=\"noopener noreferrer\">Millennium Gloucester Hotel<\/a> in London that poor payment behaviour was part of a culture highlighted in the Hackitt Review that led to \u201cbroken buildings and broken people.\u201d<\/p>\n<p>The survey found that half of all <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/fmbs-house-builders-survey-2019-sme\/64976\/\" target=\"_blank\" rel=\"noopener noreferrer\">small business owners<\/a> and managing directors had been forced to stop their own pay and one in ten admitted to being forced to pay their own staff late.<\/p>\n<p>More than one in three have fallen behind on tax bills and almost a quarter have cancelled training programmes due to payments being unfairly withheld by clients.<\/p>\n<p>BESA\u2019s head of legal and commercial services, Debbie Petford, said: \u201cThe knock-on impact can be devastating with employees then struggling to pay their mortgages, rent and household bills.<\/p>\n<p>&#8220;This leads to stress and serious mental health problems with major implications for society as a whole.<\/p>\n<p>&#8220;If the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/infrastructure-projects-save-25m\/64797\/\" target=\"_blank\" rel=\"noopener noreferrer\">supply chains<\/a> needed to deliver projects are continually disrupted by poor cash flow and insolvencies \u2013 how can you get the work done on time, on budget and to a sufficient quality?<\/p>\n<p>\u201cGetting the built environment right for the future will deliver an immediate economic dividend and address one of our country\u2019s great social injustices \u2013 the fact that people are forced to live, work and raise families in sub-standard buildings.\u201d<\/p>\n<h3>Avoid a Carillion-style collapse<\/h3>\n<p>Frise told the Association\u2019s National Conference that Whitehall was \u201cterrified of another Carillion style collapse\u201d and the huge damage that would cause to public sector infrastructure plans. However, repeated failures to reform the industry\u2019s \u201cpayment culture\u201d meant another major insolvency was very possible.<\/p>\n<p>He added that the General Election was a great opportunity to explain to politicians that the issue of late payment would undermine plans to tackle climate change.<\/p>\n<p>\u201cThe huge burden of debt created by the ongoing abuse of cash retentions is forcing many SMEs out of business and robbing our country of their vital expertise,\u201d said Frise.<\/p>\n<p>Frise told the BESA Conference that a \u201crevolution\u201d was coming because Hackitt had identified problems of \u201cignorance and indifference\u201d right across the industry \u201calong with lack of enforcement, competence, compliance and failure to take responsibility.\u201d<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>David Frise, CEO of BESA has urged the government to solve the late payment problems that challenge construction supply chains.<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[712,277,824,676,9482,908,283,947,923,621,701],"stakeholder_rel_tag":[],"contributor_rel_tag":[172180],"class_list":{"0":"post-68682","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-besa","8":"tag-built-environment","9":"tag-carillion","10":"tag-construction","11":"tag-dame-judith-hackitt","12":"tag-economy","13":"tag-finance","14":"tag-london","15":"tag-mental-health","16":"tag-sme","17":"tag-supply-chain"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Late payment problems in construction need solving, says BESA<\/title>\n<meta name=\"description\" content=\"David Frise, CEO of BESA has urged the government to solve the late payment problems that challenge construction supply chains\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/late-payment-issues-solving\/68682\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Late payment issues in construction need solving, says BESA\" \/>\n<meta property=\"og:description\" content=\"Davis Frise, CEO of BESA has urged the government to solve the late payment problems that challenge construction supply chains\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/late-payment-issues-solving\/68682\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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