UK: The government has warned the construction industry that companies could be excluded from major government contracts if they ignore tough new rules on paying their suppliers on time.
In November last year, the minister for implementation, Oliver Dowden, announced that large companies could be prevented from getting major government contracts if they do not pay 95% of their invoices within 60 days.
At the RICS annual Construction Conference today (May 23), he reiterated that message to leaders from the construction industry: “Small businesses are the back-bone of the UK’s economy, so it’s vital that we support them – and one of the key elements of that is making sure they are paid on time,” he said.
He said he recognised that for many small businesses, the difference between getting paid in 60 days and 90 days can be vital.
“That is why I have warned big businesses they must do their bit and I’ve been clear that they could lose out on valuable government contracts if they don’t.”