UK Construction Sector 2023

Payment Culture in the UK Construction Sector

Late payments have long been a problem in the construction industry, with small businesses often the most affected. According to recent reports, more than half of small construction companies in the UK are paid late, with some payments delayed by up to six months. These delays can have a significant impact on cash flow, making it difficult for businesses to pay suppliers, cover overheads, and invest in growth opportunities.

One of the main challenges of late payments is that they create a domino effect. When a company is paid late, it may struggle to pay its suppliers on time. This, in turn, can cause suppliers to delay payments to their own suppliers, and the cycle continues. The longer the delay, the more severe the impact on the entire supply chain.

Much good work has been done by the Building and Construction sector in the past two years to improve payment culture and the results of that work can be seen on this chart, with the two slowest paying companies from last year, Canary Wharf and ISG Interior Services both reducing their payment times by two-thirds. There are an increasing number of fast paying companies in Construction with the same ten fast payers from last year remaining mostly the same. But Dyer & Butler should be called out for their work to bring payment times from 42 days last year to just 14 days this year.

In conclusion, slow or late payments remain a significant challenge for small businesses in the UK Construction sector in 2023. These delays can have severe consequences, including cash flow problems, increased costs, and reduced morale. Addressing this issue requires a collaborative effort from all parties involved in the supply chain to ensure that payments are made on time and in full.

Average days to pay Feb 22Average days to pay Feb 23
CANARY WHARF LTD327118
ISG INTERIOR SERVICES GROUP UK LTD24982
MEARS GROUP PLC6770
SPACE ENGINEERING SERVICES LTD7169
ENIGMA INDUSTRIAL SERVICES LTD5765
VAN ELLE LTD6563
FES LIMITED6463
ANGLIAN WINDOWS LTD6363
BRIGGS & FORRESTER ENGINEERING SERVICES LTD6063
COLAS LTD4463
ST GEORGE BLACKFRIARS LIMITED1618
HALCROW INTERNATIONAL PARTNERSHIP2216
BDL GROUP LIMITED1716
BRITISH LAND COMPANY PUBLIC LIMITED COMPANY(THE)1516
GALLIARD HOMES LIMITED1815
SMS METER ASSETS LIMITED1515
DYER AND BUTLER LIMITED4214
SLOUGH TRADING ESTATE LIMITED1313
DANNY SULLIVAN & SONS LTD.1010
BENNETT MANAGEMENT CONTRACTORS (GB) LIMITED138

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