Late payment, delayed payment, and payment practices, in general, have long been a barrier to growth for the UK Construction industry. Efforts to solve this endemic issue stretch back over 25 years, yet the industry is still struggling to solve this critical challenge.
That’s not for the want of trying, however. In a recent paper submitted to the government by the CBI, entitled ‘Fine Margins’, they call out five significant steps that have been made in the last 10 years, with the aim of solving late payment through legislation.
This report goes on to say; ‘The construction sector ranks particularly poorly for payment practices, and the picture is even tougher for smaller businesses. Almost half of SMEs – 45% – report that late payment is a major obstacle to success.’
It’s clear that legislation alone can not solve such an endemic, entrenched issue – more needs to be done and a different approach sought.
In light of this, Payapps partnered with Construction News to bring together individuals from main and specialist contractors, as well as industry bodies to get their take on these issues and understand their perspectives on potential solutions.
Click to button below to read the full report.