Build UK publishes payment performance – but questions over slow and late payers remain
By Chris Wheal
August 12, 2024
Some companies remain stubbornly slow payers
Trade body Build UK has claimed more of its members are paying invoices faster than ever. It reckons Build UK contractor members pay 96% of invoices in 60 days, with none falling below the 90% mark. It said all tier one members pay within an average of 45 days.
But only three companies – Landsec, Lendlease and Valero Engineering – paid all their invoices within 60 days. Five firms paid less than half their invoices within 60 days. Six companies had an average payment time of more than 60 days for all their invoices received.
The interactive data throws up some challenges for the industry. Among the worst for paying within 60 days were several in four categories:
· Demolition
· M&E
· Scaffolding
· Plant hire
Only three companies had paid all their invoices within agreed terms. The worst performer had only paid one in five invoices (20%) within agreed terms. What is the point of agreed terms if 80% of invoices are not paid within the agreed terms?
Looking at the average time to pay invoices, the best companies are paying within 20 days and many substantially faster. The table below shows the fastest payers on average.
| Sector | Company Name | Average Time Taken to Pay Invoices (Days) |
|---|---|---|
| Professional Service | Citation | 13 |
| Client | IM Properties | 15 |
| Professional Service | Miller Insurance | 15 |
| Contractor | Amey | 15 |
| Contractor | Morrison Utility Services | 16 |
| Client | British Land | 16 |
| Contractor | ISG | 17 |
| Client | Landsec | 18 |
| Specialist – Interiors | Overbury | 20 |
| Contractor | Costain | 20 |
| Specialist – Interiors | Stanmore | 20 |
| Contractor | Lendlease | 20 |
Fit-out trade body the FIS reminded its members that the figures cover the volume of invoices paid – there is no data on the value or if the best and worst paid invoices are large or small. The FIS said new reporting requirements on the value of invoices paid and disputed invoices will come into force from 1 January 2025.
FIS CEO Iain McIlwee said: “Whilst the headline is positive, we can’t let it distract us from the fact that our members are still finding getting paid a daily battle. I suspect when we start seeing the value and not the volume paid, and disputed invoices in the reports, we will start to see some different patterns.
“One thing we need to be doing is making sure as the new requirements come in that we compare them to what is happening on the ground to ensure that people are reporting accurately and fairly and not bending the rules.”
.png)