Major contractors accused of ‘endemic late payment’

Grant Prior 5 years ago
Share

Trade contractors have been highlighting “endemic” payment abuse among some tier one firms following a recent spate of specialist collapses.

Companies have been contacting the Enquirer to complain about ongoing payment dispute and delaying tactics used by some main contractors.

One leading specialist trade body said: “Our members feel that payment abuse is endemic with certain tier one contractors.

“Specialists are funding work undertaken for nearly six months when you add up all the tricks and turns the tier ones use.

“Rather than 60 days payment, six months free credit and unauthorised overdraft paints a truer picture of the construction industry in some sectors.”

Specialists have also highlighted the growing use of Pay Less Notices, contra-charges and contract amendments.

One steel specialist said: “Often if we apply for erection being 80% complete it is common that the main contractor values it at 70% with little to no science behind it, just because they can.

“We then have the option to either argue the case with them to get a more reasonable notice, which would have slowed the payment down, or just accept their assessment in the hope that the money will be received on time.”

A high turnover of quantity surveyors at main contractors was also flagged as a problem.

One subcontractor said: “Across two projects we have dealt with over ten different QSs.

“The new person coming in had to get up to speed and this created delays.

“QSs were leaving because they were not comfortable with the way they were being told to operate by finance departments at head office.”

 

Latest news

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
22 hours ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
17 hours ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
22 hours ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
22 hours ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
22 hours ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
2 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
23 hours ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
1 day ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
2 days ago

M&E firm J S Wright collapsed owing £19m

Trade creditors hit for £11.4m by employee-owned Midlands firm
2 days ago

Right to work checks to be extended to self-employed

Government plans crackdown on illegal working and rogue employers
2 days ago

Midlands developer turns to London with £1bn resi schemes trio

SevenCapital plans 1,000 flats in Kensington, Islington and the Isle of Dogs projects
2 days ago

Deck falls off huge scissor lift at Winvic site

Two men seriously injured as platform plunges to the ground
5 days ago

Weston targets Build to Rent with new division

Weston Partnerships signs first deals with asset managers and councils
2 days ago

Bouygues seals deal for £119m Cardiff college campus

Construction to start in June on two new buildings
5 days ago

£140m cash injection to speed-up flood defence schemes

Funding part of £2.65bn investment over the next two years
2 days ago

Bid race starts for £15bn schools framework refresh

DfE throws framework open to more contractors
5 days ago

Berkeley’s £600m Borough Triangle project approved

Controversial scheme features two towers of 38 and 44-storeys
6 days ago

London Mayor calls in blocked 600-bed student scheme

Refused 20-storey London PBSA block may still be built
5 days ago

HG to build 500-bed London Stratford student scheme

Work will start later this year subject to gateway 2 safety approval
6 days ago

Arrest after pedestrian death on construction site

Tragedy during site preparation works for new Wigan car park
5 days ago

British Steel threatens closure of Scunthorpe blast furnaces

Chinese owners say sectional steel and rail supplies will be maintained
6 days ago

Planning green light for Sheffield warehouse site

Existing factories to be demolished in new scheme for Rula Developments
5 days ago

New rail property company to unlock land for 40,000 homes

First four sites released in Newcastle, Cambridge, Manchester, and Nottingham
6 days ago

Drainage specialist Subscan files administration notice

Specialist employing 131 people files court notice
6 days ago

Four win Network Rail £300m engineering design deal

Eastern region deal will include design for Northern Powerhouse Rail
6 days ago

Funding go-ahead for Banwell bypass after fresh cost hike

Galliford Try contract rises £14m to £64m after final design change
6 days ago

Graham wins Southport £75m Marine Lakes Centre

Firm replaces Kier which parted ways with backer Sefton Council
6 days ago

Chancellor unveils extra £2bn capital spend a year

Construction promised a defence dividend in military base and homes upgrade work
7 days ago

McLaren confirms subcontractor team on £135m warehouse job

Work starts on TN2 Gateway site in Kent.
7 days ago

Contractor services