Balfour reinstated to Payment Code, FM Conway suspended
Balfour Beatty and Persimmon are among a number of construction firms to have been reinstated to the Prompt Payment Code, while FM Conway has been suspended.
Leeds-based specialist enabling works firm Rhodar was the only other construction company among 11 firms suspended.
Companies can be suspended from the Code, administered by the Chartered Institute of Credit Management (CICM) on behalf of the Department for Business, Energy and Industrial Strategy (BEIS), if they fail to honour a commitment to pay 95% of all supplier invoices within 60 days.
Both FM Conway and Rhodar have submitted an action plan to enable them to meet the commitment and reverse their suspensions.
A total of 14 companies have been reinstated to the code, among them Balfour Beatty, Ferrovial Agroman, John Sisk & Son, Kier Construction, Kier Infrastructure and Overseas, Galliford Try, Laing O’Rourke and Persimmon
CICM’s chief executive Philip King said: “All 14 businesses have demonstrated a substantial improvement in payment performance that warrants re-instatement to the Code. Since the policy was changed in 2019 to begin naming those who had failed to honour their Code commitments, 55 businesses have been suspended and 26 re-instated, including the 14 announced today.
“We will continue to challenge signatories to the Code if the obligatory Payment Practice Reporting data suggests that their practices are not compliant. We are encouraged by those who have already submitted action plans to achieve future compliance, and we are working closely with those businesses to support a better payment culture.”
Small business minister Kelly Tolhurst said: “A growing number of businesses have signed up to the Code, a great sign that we are starting to change the culture of late payments. It’s encouraging to see businesses reinstated after improving their practices, but we’ll continue to clamp down on late payment to support small businesses that are exploited by their larger partners.”