Several Kier operating firms were removed because they failed to honour their Code commitment to pay 95% of all supplier invoices within 60 days.

But the construction business has now been reinstated after implementing an action plan to improve practices.

Andrew Davies chief executive, said: “Kier has been working with the Chartered Institute of Credit Management to address this important issue and we have been implementing approved action plans across the business.

“We remain committed to paying all our suppliers to agreed terms and have made significant improvements in our payment processes while continuing to offer our subcontractors, particularly SMEs, a range of accessible payment plans.”

CICM Chief Executive Philip King, said: “As part of our work driving culture change to end late payments, we are working closely with Kier and are impressed with its level of engagement leading to a significant trajectory of improvements in payment days.

“This demonstrates the effectiveness of its action plan and we are delighted to reinstate Kier Construction to the Prompt Payment Code.”

All payment transactions across the business are now processed from the Kier financial shared service centre, providing a more consistent approach to payment.