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New UK scheme reassures improvement of supply chain payment

Thursday 18 August 2016 09:03 CET | News

The UK government’s Construction Leadership Council has published a new payment charter for the construction supply chain (CSCPC) and reassures improvement in payment terms.

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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Keywords: UK, supply chain payment, late payments, CSCPC, Construction Leadership Council, payment charter, B2B payments, Faster Payments, Prompt Payment Code, regulation
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Banking & Fintech