Currently, the UK has its Prompt Payment Code in place, but with the new initiative, the council wants to restore trust that companies that sign up to the new version take seriously good payment practice.
The downside is that although most major construction companies eventually signed up for the Prompt Payment Code, there is no clear tool in place to measure its effectiveness.
To date, 19 organisations are listed as having signed the new CSCPC charter.
The declared ambition of the Construction Leadership Council is that by 2025 the construction industrys standard payment terms are 30 days and that retentions are no longer withheld.
The new scheme, like the old one, is administered by the Chartered Institute of Credit Management.
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