Contractor Costain has signed up to the Department for Business, Innovation and Skills’ Prompt Payment Code.
Contractor Morgan Sindall has also signed up to the code, which is a voluntary agreement to encourage punctual payment of suppliers.
Many companies have not signed up to the code - business and enterprise minister Michael Fallon wrote to companies in November 2011 urging them to sign up.
The Prompt Payment Code
Signatories of the code agree to:
- Pay suppliers on time within the agreed terms.
- Provide suppliers with clear guidance on payment procedures.
- Create systems for dealing with complaints and disputes and to tell the suppliers about it.
- Tell suppliers promptly if there is any reason why an invoice will not be paid as agreed.
- Convince suppliers to encourage adoption throughout their own supply chains.
They agree not to:
- Change payment rights retrospectively.
- Change practice on length of payment for smaller companies unreasonably.