Late payment has long been a major issue across the construction industry – particularly for small and medium-sized businesses and subcontractors – often creating significant pressure on cash flow and overall financial stability.
That is why the government’s proposed Small Business Protections Bill is attracting significant attention across the sector. The Bill, which entered Parliament today (19th May), is being described as the biggest crackdown on late payments in more than 25 years. Keep reading this week’s blog to find out more about what the proposed changes involve and what this means for construction and the wider economy.
In the construction industry, cash flow is king. Yet one persistent and unfair practice continues to drain liquidity from subcontractors and smaller firms – retentions.
The National Federation of Roofing Contractors (NFRC) has long campaigned to eliminate or at least reform retentions, and now the Government has launched a major consultation on both late payments and retentions. This is a crucial moment in which the sector can have its say and potentially influence legislative changes. For more information, take a look at this week’s blog.
Late payments have long been a thorn in the side of UK businesses – and for those in the construction sector, they can be the difference between thriving and closing the doors for good. Now, the government is stepping in with the most ambitious reforms in decades, promising to tackle late payments head-on and give small businesses the fair treatment they deserve.
With new legislation on the horizon, this could be a turning point for an issue that has plagued our industry for years. But what exactly will it involve and will it be enough? Keep reading to find out more.
Uncertainties over Brexit are undoubtedly causing major issues for British businesses (particularly in terms of how and when they can move forwards with investment-driven projects). However, there is another pressing issue that, right now, is hugely problematic for companies – late payments. Just take a look at the following statistics: The UK’s late payment problem…