Network Rail’s new Fair Payment Charter has been signed by 30 major construction and engineering companies, the rail infrastructure owner and operator said today.
The charter ratifies the firm’s recent decision to shorten the time it takes to pay suppliers from 56 days to 21 days, and commits suppliers to make payment to their first-tier subcontractors within seven days of receiving payment.
Network Rail said that as it looks to phase out the practice of retention in its contracts – where a portion of payment is withheld until after completion of work – the charter will also commit suppliers to mirror the retention regime. So, where the main contract retention is zero, this will be replicated down the supply chain.
“The Fair Payment Charter is a statement of how the rail industry wishes to do business,” said Network Rail infrastructure projects managing director Simon Kirby.