Duty to report on payment practices and performance in construction
Introducing the new payment performance reporting legislation
From 6th April 2017, the Government is making it compulsory for large businesses to report on their payment practices, policies and performance in an effort to achieve the following objectives:
- Increase transparency and public scrutiny of large businesses’ payment practices and performance
- Give small business suppliers better information so they can make informed decisions about who to trade with, negotiate fairer terms, and challenge late payments
Following the 2011 amends to the UK Construction Act in 2011, this new legislation goes further to help tackle late payments in Construction and other industries and encourages improved construction financial management. It supports those firms that are already a signatory of the Prompt Payment Code (PPC) and the Construction Supply Chain Payment Charter (CSCPC), these businesses being those that set the standards for best payment practices and are pushing the industry to achieve standard payment terms of 30 days by 2025.