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Kier, Balfour, Vinci take over 50 days to pay invoices

31 July 2018 | By Neil Gerrard

Image: Dreamstime.com

Several of the biggest main contractors - including Kier, Balfour Beatty, Vinci - take an average of more than 50 days to pay invoices.

Information on the payment performance of 24 out of 27 of Build UK's contractor members has been published as part of the industry's commitment under the recently published Construction Sector Deal.

The figures revealed that it takes the 24 firms an average of 46.4 days to pay invoices.

Murphy Group took the longest out of the 24 companies to pay, at an average of 66 days.

It was followed by Engie (61 days), Kier (54 days), Balfour Beatty (54 days) and Vinci (52 days), which together make up the slowest five payers.

The best-performing companies were Willmott Dixon (33 days), Canary Wharf Contractors (34 days), VolkerWessels (35 days), Aecom (40 days), and Bouygues (40 days).

The 'duty to report on payment practices and performance' commitment under the Construction Sector Deal requires all large companies to report on their payment practices every six months.

Build UK said the first "clear and comprehensive" picture of payment within construction would enable the supply chain to make informed decisions for the first time.

Minister for implementation Oliver Dowden said: "Government is leading by example in fair payment practices. All public sector organisations are required to pay undisputed invoices in 30 days and ensure this payment term is passed down the supply chain.

"Build UK is leading the industry by publishing its members’ payment performance. I hope to see more of these initiatives being led by industry to help us drive a positive change in culture and help eliminate poor payment practices.”

Build UK chief executive Suzannah Nichol said: "The creation of Build UK offered the industry the opportunity to sit around the same table and work together to tackle the issue of payment, which continues to hold the industry back from realising its true potential. Transparency is essential to changing the industry culture around payment and the Duty to Report has provided a consistent means of comparing performance.

"This bold first step by Build UK and its members shows that the leaders within the sector are serious about changing the way they do business."

Comments

The construction industry is being run by accountants who know absolutely nothing about construction. all they know is a balance sheet and how to move money. that's why there are the problems that we have in the industry.

Stephen Crow, 31 July 2018

clearly the likes of Murphy & Kier are taking to heart the statistics showing the low savings rate that prevails in the country - and doing something about it.

one must be positive about these things.

ed martin, 31 July 2018

I thought there were strict rules in place as far as payment time scales are concerned

Sheila, 31 July 2018

When will main contractors realise that cash flow is key - not just theirs, but for their subcontractors as well. Subcontractors will load their quotes when tendering to poor paying main contractors, plus poor project cash flow leads to more expensive construction.

Publishing payment performance is a great move.

Neil Bradshaw, 31 July 2018

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