........ " government to introduce statutory requirements to pay within 30 days ..... "

[V8Druid]

don't get too excited ...... but it's a step in the right direction --- if it ever happens

https://www.theconstructionindex.co.uk/news/view/mps-call-for-project-bank-accounts

 

[Stock]

30 days from when? I remember once attending a tender qualification meeting to a drainage contract I had supposedly won, and these were the payment conditions. Firstly I was supplying all the materials, stone, 450mm pipe, manholes, tream, etc.
So no invoice for the first 30 days, invoice only on sign of a remeasure, then payment on 60 days from receipt of invoice at head office.
actual
Work the first month, wait a month for the sign off, then at least 2 weeks for the remeasure. Submit invoice to site for payment. Two weeks later it arrived at head office.
Standard return to site for clarification, two weeks return to payment office, stamped as received then 60 days form date of stamp............................ so basically it was 5-6 months for payment ........................................... oooh! and this was a state job given to a main contractor a I was constantly being told in the meeting that my money was guaranteed,
Left the meeting and the contract unsigned on the table....................................the contractor that took on the job got badly burned................... when the main contractor got in to difficulties and was taken over by a supplier company they owed a lot of money to.

 

[Grahams]

The problem, as always, is in the small print. How long do they have to sign a job off? How many times can they delay whilst picking up petty issues that are a fraction of 1% of the total. What actually happens when they are late paying? If it is up to the person who receives the late payment to complain lots are not in the position to do so if they want future work.
The idea is good, but when you are dealing with accountants who run finance departments who all get their salary paid each month regardless and who don’t give a s**t and threaten their underlings not to give out their details no matter how much I complain it won’t work. The decent companies will do their best to pay on time, the tossers will just ignore it and carry on as usual.
Not that I’m cynical about the likes of Carillion or anything.
Graham

 

[V8Druid]

totally agree with both of you .... on the odd occasions I dared to do anything for a 'major' player, I always added in additional sums for a 6 month wait .... but TBH 99% of the time the quotation request went straight in the bin ..... I had enough regular work from known good customers, that I didn't have to take the risks ..... PSA were one of the worst payers on the planet and BSC got binned when they went to 120 days, which in reality meant another 3 months on top of that and there was no more room for additions ....... so glad i am well out of it ... had become a total nightmare, especially with all the new paperwork trails that've come in the last few years

 

[Gunners]

Anything that forces business to pay on time is a good thing in my opinion. As you point out, there are probably going to be ways around it but its a step in the right direction. Really the industry needs a good shake up with more firms saying no to work unless contracts are more balanced. If the big players couldn't get anyone to do their work then they would have to change right? Essentially its the good old race to the bottom rearing its head again.
The other area that needs looking at is retention and the timely payment of it after the specified time. Late payment of invoices and retention's are both used to cash flow bigger business and its out of order.

I'm currently saying no to starting a large job for a national housing developer because the guy I'm joining forces with to do the work is owed over £20k in retention on previous jobs, some of which are over a year overdue. That means the work was completed over 3 years ago. Its ridiculous and outrageous and I fully support my business partner on this even though this is the job that's going to pay for my Engcon!
Interestingly enough since we cancelled the meeting to be awarded the job on Thursday, the housebuilder has come round to our way of thinking and its looking like all retention's will be paid up tight before we sign for the new job. The email trail back and forth has been quite amusing, the cards seem very much to be in our hands and the housebuilder is now desperate for us to start. Amazing how walking away and calling their bluff has turned them around but its a ballsy move.

 

[pettsy]

I’m only a sole trader, and do mainly domestic work so can specify my own terms. Do some on call subcontract emergency work that pays “30 days from invoice date” that earns me good money. The payment dates have been slipping the last few months, and every time I ring I get the same “we’re short of staff but hoping to catch up next week blah blah”. I do get paid albeit late, but told them if they don’t sort it out then I won’t be turning out for them. I’m not a money lending service and without us subcontractors they can’t do any jobs as they only have office staff!

 

[TiltyShaun]

Retentions are there for a reason....to ensure you go back to del with any minor issues that occur....if it is a major issue it is unlikely to be enough money!!

I have had a phone call regarding regarding a small roof leak, I politely told the caller they needed to call a roofing company, they asked why I would not do it under warranty as I was the original builder. I had to explain that was over 12 years ago!!

 

[V8Druid]

Anything that forces business to pay on time is a good thing in my opinion. As you point out, there are probably going to be ways around it but its a step in the right direction. Really the industry needs a good shake up with more firms saying no to work unless contracts are more balanced. If the big players couldn't get anyone to do their work then they would have to change right? Essentially its the good old race to the bottom rearing its head again.
The other area that needs looking at is retention and the timely payment of it after the specified time. Late payment of invoices and retention's are both used to cash flow bigger business and its out of order.

I'm currently saying no to starting a large job for a national housing developer because the guy I'm joining forces with to do the work is owed over £20k in retention on previous jobs, some of which are over a year overdue. That means the work was completed over 3 years ago. Its ridiculous and outrageous and I fully support my business partner on this even though this is the job that's going to pay for my Engcon!
Interestingly enough since we cancelled the meeting to be awarded the job on Thursday, the housebuilder has come round to our way of thinking and its looking like all retention's will be paid up tight before we sign for the new job. The email trail back and forth has been quite amusing, the cards seem very much to be in our hands and the housebuilder is now desperate for us to start. Amazing how walking away and calling their bluff has turned them around but its a ballsy move.

..... and if everyone grew a set, things would have to change, for everyone ..... good on you .... nice to be in the driving seat, for a change and demonstrating that without you and all other sub-contractors, who make their projects work .. they're nothing but ****ing useless pen pushers in a rented office

 

[V8Druid]

Retentions are there for a reason....to ensure you go back to deal with any minor issues that occur....if it is a major issue it is unlikely to be enough money!!

I have had a phone call regarding regarding a small roof leak, I politely told the caller they needed to call a roofing company, they asked why I would not do it under warranty as I was the original builder. I had to explain that was over 12 years ago!!

..... and have a set limited time period ..... no one should have to fight for their retention payments after the due date has expired, or wait quietly for their payment ..... should be an automatic legal requirement that they are made when due

 

[V8Druid]

I’m only a sole trader, and do mainly domestic work so can specify my own terms. Do some on call subcontract emergency work that pays “30 days from invoice date” that earns me good money. The payment dates have been slipping the last few months, and every time I ring I get the same “we’re short of staff but hoping to catch up next week blah blah”. I do get paid albeit late, but told them if they don’t sort it out then I won’t be turning out for them. I’m not a money lending service and without us subcontractors they can’t do any jobs as they only have office staff!

these paper shufflers will eventually learn that, without the men at the sharp end, being keen to be of assistance, by being paid on time, their business will fail to function ... a rented office can't earn a bean without the subbies providing the services they charge for

 

[Nick...]

All big company’s are bad payer,all 90/120 days then find fault,loose bills etc to delay payment.luckily I’ve only been caught once when I started and it was Balfour Beatty.got paid eventually after writing to md as I needed to pay for my avatar and was struggling having just started out on my own.there was a big firm around here,long gone now who would get owner ops in and pay weekly for first week or two then every 3/4 weeks then got worse and people could not afford to leave them.luckily I never got caught there either.we all get screwed over.if we went to sainsbury and said we would pay in 8 weeks we would get told to f**k of but it’s ok for us to get screwed
Nick...

 

[Stock]

How do people find the royal Dutch company to pay? the lads with the green and orange colours....................................................

 

[Giles]

a company we have done a lot of work for last 5 years have been bought out by giant american corporations who have mandated all suppliers on to 90 days, ive told them i won't be doing anymore work for them or ill be adding 25% to cover the 90 days im still waiting to hear. getting paid is the hardest part of the job

 

[topkit]

You should try dealing with some of the big high street retailers as i have done in he past selling manufactured products into the sheds, The screw ou over on price then they hit you with 56 days credit then the offer to pay you in 28 days in return for another 5% off for an early settlement discount, i refused to deal with them in the end as you end up with all your eggs in one basket then they screw you over and walk away leaving you with no business.

 

[V8Druid]

many, many years ago, I used to do a lot of work for t*sco ..... in the fit out stages of their stores - all sorts of one off fab.s ..... they were such bas***ds to pay I kicked them into touch - 6 months was their norm ........ if you fought hard for it - we rarely patronise them - ever

 

[V8Druid]

a company we have done a lot of work for last 5 years have been bought out by giant american corporations who have mandated all suppliers on to 90 days, ive told them i won't be doing anymore work for them or ill be adding 25% to cover the 90 days im still waiting to hear. getting paid is the hardest part of the job

used to do a lot for an American owned company locally and they were always bloody good payers, fair play to them ... big outfit too

 

[V8Druid]

" Exactly one year on from Carillion’s collapse and a host of major construction companies still appear unable to stand on their own two feet without exploiting their suppliers. "


https://www.theconstructionindex.co...o-improvements-for-constructions-supply-chain

 

[Nick...]

We can all hope but can’t see it happening.us owner ops will still be customers bankers
Nick...

 

[V8Druid]

We can all hope but can’t see it happening.us owner ops will still be customers bankers
Nick...

aye ... too many in power, that profit from it, to ever see it change, IMHDO

 

[Danny]

I need to change my invoices to stop giving domestic customers 30 days to pay!