There's much more work to do to make payment fairer

摘要

Payment has been on the agenda recently in Construction News. In December, it published an Oracle-sponsored panel discussion and, last month, it published its latest CN Payment 100 list, analysing how promptly the UK's largest contractors pay their suppliers. But looking at the landscape today, we can see that progress on making payment fairer has been mixed. PBAs: a success Let's deal with project bank accounts (PBAs) first, which have been a success story. Research I recently participated in with Constructing Excellence showed that they have gained traction across the UK. Highways England remains the most prolific user and, by 2025, some £l7bn of its work will have been paid through PBAs. As a result, contractors and consultants are being paid within 18 days of the assessment (valuation) date in the main contract. Apart from providing a measure of security for the supply chain against upstream insolvencies and reducing payment times, PBAs provide other benefits. Main contractors report they promote greater collaboration and help improve the performance of their supply chain. Clients report that they help reduce project costs and improve supply-chain resilience.