Kier suspended from Prompt Payment Code as Interserve reinstated
Kier has been suspended from the Prompt Payment Code for failing to pay suppliers on time, along with fellow contractor Seddon.
Meanwhile, Interserve has been reinstated along with several other construction firms including Alun Griffiths, Kellogg Brown & Root and Severfield (Design & Build). Costain’s previously announced reinstatement to the Code was also confirmed.
The news was announced by the Chartered Institute of Credit Management (CICM), which administers the Code on behalf of the Department for Business, Energy and Industrial Strategy (BEIS).
Several Kier companies – Kier Integrated Services, Kier Infrastructure and Overseas, Kier Construction, Kier Highways and McNicholas Construction Services – were suspended.
But CICM added that all of the businesses that had been temporarily removed from the Code had already submitted action plans towards achieving compliance.
The Code demands that signatories pay 95% of all supplier invoices within 60 days.
CICM chief executive Philip King said: “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 added: “We want to make sure that the UK is the best place in the world to work and start a business. Tackling late payments will ensure we level the playing field for small businesses so they can grow and thrive. As a former small business owner, I know how damaging late payments can be on cashflow.
“The vast majority of businesses pay their bills on time and it’s encouraging to see some companies engaging with improved payment practices, allowing them to be reinstated on the Code. However, more needs to be done, and today’s action shows we are not afraid to crack down on those who do not pay suppliers on time.”