Late payments in construction hit 42 days
19th June 2018

Construction suppliers are now having to wait an average of over 42 days for payment, up from just over 40 days only five years ago, according to figures published this week.

At the same time, late payment is forcing more construction companies into insolvency, up 8% to 2,633 in 2016/7 on the previous year, according to the report, by business finance provider Funding Options.

The figures reflect the concerns of organisations such as the Federation of Small Businesses, Read Story and also come at a time when moves in Parliament were launched earlier this month to introduce a deposit scheme to protect SMEs against late payment.

Conrad Ford, CEO of Funding Options, warned: “A single late payment can be an issue even for larger and more successful firms, and worsening delays could create more insolvencies.”

“Carillion’s collapse sent shockwaves through the industry, affecting smaller suppliers who will now never get paid what they are owed. Construction businesses have high overheads and labour costs, and many cannot afford to wait for payment for lengthy periods of time.”