11 August 2016
New payment charter for the construction industry
The Government’s Construction Leadership Council has published a new payment charter (the ‘Construction Supply Chain Payment Charter’, or CSCPC) for the construction supply chain.
The charter is aimed at creating a “strong resilient and sustainable supply chain”, by ensuring “fair and transparent payment practices”; by becoming a signatory to this Charter, an organisation agrees:
to apply the fair payment commitments in its dealings with its supply chain;
to be monitored for the purposes of compliance by reporting against a set of agreed key performance indicators (KPIs); and
to consider the performance of its supply chain against the agreed KPIs when awarding contracts.
In order to be able to sign the charter, an organisation must first be a signatory to the Prompt Payment Code (PPC), which is administered by the CICM (Chartered Institute of Credit Management) and sets standards for payment practices and best practice.
Further information about the CSCPC and the Prompt Payment Code (including a list of those organisations who have signed the new charter), can be found on the Chartered Institute of Credit Management (CICM) website.
Shulmans’ Head of Construction Phil Morrison regularly runs seminars for contractors, sub-contractors and consultants operating in the construction industry, on the subject of securing prompt payment. Copies of Phil’s presentation can be found on our website.
For any further advice on how to secure payment in the construction industry, please contact Phil on 0113 297 8934 or at email@example.com.