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SMEs get a better chance of chasing late payment

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Comments

  1. the details above relate to invoices – is it equally applied to valuations – the basis on which most subcontractors work for Main Contractors. If not, it seems to be pretty worthless – Main Contractors will pay on time for bricks etc. otherwise they won’t get supplies – they will however continue to use subcontractors to finance their contracts to a very great extent.

  2. How will this affect companies that technically pay on time by paying by cheque but in reality the funds are received late because the cheque needs to clear. So 1 week’s delay which still severely affects cash flow.

  3. It seems the act only applies to invoices? What about applications for payment? It looks like these large contractors could manipulate the statistics in their favour if it’s solely based on invoices, especially if you have a self-billing agreement with the contractor who would be free to date the invoice as the payment date.

  4. I ran a SME in the construction industry for many years, and paid my subcontractors and suppliers at the end of the month following the date of the invoice. To do this I needed prompt payment from my Main Contractors, but had to chase hard every month to get this, and cost a great deal of time and money.

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