Laing O’Rourke reinstated to Prompt Payment Code
Laing O’Rourke has been reinstated to the Prompt Payment Code (PPC), having been one of seven construction firms suspended earlier this year.
- Eight construction firms removed or suspended from payment code
- More contractors suspended from Prompt Payment Code
- Costain back in Prompt Payment Code
- Kier suspended from Prompt Payment Code as Interserve reinstated
The contractor was censured by the Chartered Institute of Credit Management (CICM) in April this year for failing to pay its suppliers on time. It was suspended alongside Balfour Beatty, Costain, Engie Services, Interserve Construction, Kellogg Brown & Root, and housebuilder Persimmon. John Sisk & Son was kicked off the scheme completely at the same time.
The Code requires the thousands of firms signed up to it to pledge to uphold best practice for payment standards, including a commitment to pay 95% of all suppliers within 60 days.
Now Laing O’Rourke joins Costain, Interserve and Kellogg Brown & Root in being reinstated to the scheme, having tightened up its payment practices.
John O’Connor, group commercial director at Laing O’Rourke said: “Laing O’Rourke values its supply chain partners who are integral to our ability to deliver world-class projects for our clients. The UK business set out a clear action plan to address prompt payment, which was agreed with the Chartered Institute of Credit Management. We are pleased that those actions, which have included investment in technology and a refinement in payment processes have seen improvements in supplier payments, resulting in our reinstatement to the Prompt Payment Code live list.”
Philip King, chief executive at the Chartered Institute of Credit Management said: “Laing O’Rourke has demonstrated that the actions implemented through their plan have resulted in improved payment performance, with an ongoing upward trend. We are delighted that this has led to their reinstatement on the Prompt Payment Code.”