The Prime Minister has said that payment will be included within the Industrial Strategy for Construction and that cashflow is critical to the supply chain surviving.
David Cameron has responded to a letter sent by NSCC asking the government to take decisive action on extended payment terms in the construction sector following reports that Carillion is increasing its maximum payment terms from 65 to 120 days as part of a new payment system.
In his letter, Mr Cameron stated that he was ‘very aware of the pressures faced by subcontractors in the construction sector’ and that ‘the construction supply chain should not have to wait for lengthy periods to be paid for work they have already completed’. He went on to say that ‘this is something the government takes extremely seriously’ and that ‘payment will be included within the Industrial Strategy for Construction’.
