Costain was one of seven major contractors removed or suspended from the list three months ago for failing to pay suppliers on time.

Scheme organiser the Chartered Institute of Credit Management has now acknowledged Costain’s progress to ensure its suppliers are paid in line with the requirements of the code.

A Costain spokesperson said: “Costain was an early signatory to the Prompt Payment Code and we have taken action to ensure we comply.

“We are pleased that the implementation of an improvement plan, which included moving all our suppliers onto payment terms of 45 days or less, increasing the frequency of payments and improving our processes, has been successful in meeting the standard required to achieve reinstatement.”

Philip King, chief executive at the Chartered Institute of Credit Management, said: “Costain has not only been able to demonstrate that its payment performance has reached the required standard, but it is also trending upwards.

“We are delighted that this has led to their reinstatement on the Prompt Payment Code list.”