ECA responds to launch of construction fair payment charter

Reeve said, ‘Previous voluntary codes and charters have had no discernible effect on late payment, so while we welcome it as a route map to 30 day payment terms, history suggests that it won’t solve the problem by itself.

‘We urge the government to introduce the legislation that it has previously committed to, that will require businesses working for any public sector client to pay their supply chain promptly – well within 30 days – to complement this charter. We also believe that anyone who fails to pay on time should be excluded from public procurement opportunities for up to two years, which should give them enough time review and modify their payment behaviour.’

He concluded, ‘The charter is now the benchmark for good payment practice. Anyone who signs up to the charter, and by signing up we mean to beyond 2018 and under 30 day payment terms, should receive ample client recognition. Anyone who does not should be regularly asked to explain what is so challenging with their set up that they cannot follow industry good practice.’

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