Payment practices to become public knowledge – is your business ready?
If you’ve read any of our blog posts in the last six months, you’ll notice that we put a lot of emphasis on the negative impacts of late payment in the construction industry. With subcontractors losing out on over £16,000 per year on average, it’s no surprise that the government have introduced legislation to curb late payment in an effort to strengthen the construction industry as a whole.
The new ‘Duty to report on payment practices and performance’ legislation is a bold move by the government to publicise the payment practices of the largest UK businesses. Subcontractors will soon be fully aware of any late payment habits from potential contractors, knowing who to avoid working for if possible. Some will think of it as the overdue kick that the construction industry needs.
Payapps.com has firmly aligned itself with businesses who strive to promote fair payment practices across the construction industry. As an online solution for managing the application for payment, valuation and certification process between main contractor and subcontractor, Payapps.com is designed to eliminate common errors caused by faulty spreadsheets and manual input, replacing them with a rigid system giving little room for human error.
Email notifications help subcontractors submit applications on time, and they also help the main contractor with issuing payment notices on time, disclosing the all-important payment due date.
Many would argue that this is more beneficial to the main contractors, and they would be right – if the subcontractor applies for more than the work completed, and the main contractor misses the payment notice deadline, the main contractor could be required by law to pay the full amount of the money applied for. Payapps.com will automatically notify you when your subcontractor is due their payment notice, right up until the deadline day, thus helping to conform with original contract agreements and the UK Construction Act timelines.
Find out whether your business practices will be made public knowledge whilst earning CPD points by clicking here.
Find out how Payapps.com will improve your online supply chain application and payment notice processes by viewing a demo here.