Late Payment Continues To Impact Construction Industry

New figures have revealed late payments are still continuing following the impact of the UK's construction industry.

In its annual survey of UK tradespeople and small contractors, specialist insurer ECIC found 41% of firms experience issues with late payment.

With electricians and plumbers impacted the most, one in five (19%) of survey respondents said they struggle to pay for supplies due to cashflow problems caused by late payments.

In addition, 14% of participants stated they had to fund a specific resource just to chase outstanding payments.


John Flaherty, Business Development Executive for ECIC said: "It's shocking that despite Government promises of support, late payment is still such an issue for the construction industry – to the extent that it affects contractors' ability to buy supplies.  This can have a serious knock-on effect for their business, delaying projects and damaging customer relationships.

"As part of the Enterprise Act introduced in May, unnecessary delays in claims payments should be a thing of the past, giving tradespeople some much needed certainty when they need to make a claim."

However, the survey revealed 37% of contractors said they turn work away from clients who are known late payers.

Mr Flaherty added: "The good news is that where they can, firms are being selective about who they will work with, based on the customer's previous payment performance.  By taking a firm stand in this way, it sends a clear message that late payment won't be tolerated."

(LM/CD)