Late payment times decreased over 2013
Late payments have long been endemic in the construction industry, with Labour MP Debbie Abrahams claiming that a ‘culture of late payments’ is acting as an obstacle for small businesses and construction firms seeking expansion.
Integrity Software reported in July 2013 that efforts were being made to combat construction industry late payments, but few would have predicted the industry to have effected a positive change quite so quickly. It has been reported by the Association for Consultancy and Engineering that small UK construction firms are now being paid sooner than in previous years, with late payment times decreasing over 2013.
The previous survey revealed that small businesses would have to wait for 90 days on average before being paid, but the most recent ACE data saw that figure fall to an average of 85 days. The average payment time for businesses of all sizes remains at 85 days, but as small businesses are often the most keenly affected by late payment we can still see the ACE survey results as a positive sign for the construction industry.
2014 promises to be an encouraging year for the construction industry as a whole, with economic recovery helping to consolidate the industry growth figures brought on by last year’s residential housing boom. We can also look forward to a reduced instance of late payments throughout the year, so businesses looking to take advantage of the opportunities offered by the year ahead can look to do so with the help of our construction accounts management software.