A Government minister has reminded large companies in the construction industry that new prompt payment rules are set to take force this year.
From 1 September 2019, new legislation will mean large companies may be prevented from winning government contracts if they do not pay 95% of their invoices within 60 days.
Oliver Dowden, Minister for Implementation, spoke at the annual construction conference for the Royal Institution of Chartered Surveyors (RICS), to remind business leaders of the changes.
"For many small businesses, the difference between getting paid in 60 days and 90 days can be vital.
"That is why I have warned big businesses they must do their bit and I've been clear that they could lose out on valuable government contracts if they don't."
Alan Muse, global standards director at RICS, added:
"We have previously recommended linking payment records to procurement decisions, and we are pleased that the new rules coming into force in September endorse this.
"RICS supports the changes wholeheartedly, and believe that this will lead to industry efficiencies for the benefit of all construction stakeholders, as well as supporting the small business across the UK."
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