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NCE Daily News Tuesday 22 April 2014: Government launches fair payment charter with nine signatories

The government today formally launched its new supply chain-friendly scheme.

The government led initiative to promote fair payment has today launched its formal charter, which has been signed by nine firms from the Construction Leadership Council.

The Construction Supply Chain Payment Charter commits firs to payment terms of 30 days from January 2018.

The Charter sets out 11 commitments, which also payment terms of 45 days from June 2015, and 60 days with immediate effect. Others include not withholding cash retentions, not delaying or withholding payment, and making payments electronically.

Any organisation that becomes a signatory to the Charter agrees to apply the fair payment commitments in its dealings with its supply chain; to be monitored for the purposes of compliance by reporting against a set of agreed key performance indicators (KPIs); and to consider the performance of its supply chain against those KPIs when awarding contracts.

Philip King, chief executive of the Institute of Credit Management, will now lead work on the development of monitoring arrangements for the commitments made by signatories to the Charter.

Companies represented on the Construction Leadership Council that have agreed to sign up to the charter:

  • Barratt Developments
  • Berkeley Group
  • British Land
  • Imtech UK
  • Kier
  • Laing O’Rourke
  • Skanska
  • Stanford Industrial Concrete Flooring
  • Stepnell

“This Charter signifies the Construction Leadership Council’s commitment to small and medium-sized business, and the important role they play in the construction industry,” said government construction adviser and ICE past President Peter Hansford. “Through the Council, the Government is working very closely with industry to give businesses of all sizes the confidence to invest – securing high skilled jobs and a stronger economy for everyone.”


Contractor Skanska is to create around 1,500 jobs in the UK during the next two to three years, the firm said, to staff major contract wins in the rail, water, building and roads sectors.

“With more focus on infrastructure investment, we have seen our visible pipeline of new work growing strongly during the last nine months, giving us increased confidence about the future,” said Skanska UK chief executive and Presiden Mike Putnam.

“Having the right people with the right skills in the right numbers is therefore a priority for us. We are accelerating our recruitment activity significantly across all our operations, to fill roles at all levels of the company and in many parts of the UK.” 

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