{"id":600857,"date":"2023-01-24T18:52:30","date_gmt":"2023-01-25T00:52:30","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/01\/24\/construction-payment-times-getting-later\/"},"modified":"2023-01-24T18:52:30","modified_gmt":"2023-01-25T00:52:30","slug":"construction-payment-times-getting-later","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/01\/24\/construction-payment-times-getting-later\/","title":{"rendered":"Construction payment times \u2018getting later\u2019"},"content":{"rendered":"
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\"Money <\/p>\n

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More than half of all invoices sent to construction firms were paid late last year, an analysis has found.<\/p>\n

The proportion of late invoices \u201csignificantly increased\u201d to 52.9 per cent across the sector in 2022, a rise of 13 per cent compared with 2021.<\/p>\n

Data company Creditsafe looked at 21 sectors and found that only two others \u2013 water and waste (58 per cent) and mining and quarrying (53.2 per cent) \u2013 performed worse.<\/p>\n

But construction\u2019s year-on-year change was the worst of any of the sectors.<\/p>\n

The company analysed more than 100 million invoices from accounts receivable departments across the two years to reveal the results<\/a>.<\/p>\n

Federation of Master Builders (FMB) chief executive Brian Berry said late payments were \u201ca real issue for small, local builders who are cashflow-reliant\u201d.<\/p>\n

\u201cUnfortunately, the industry is facing a tough time with fluctuating prices with margins being squeezed as prices go up, which has led to increased insolvencies,\u201d he added. \u201cSME builders are often at the bottom of the supply chain and can find themselves being paid late due to payment issues further up the chain, which is why it\u2019s important that everyone is paid on time.<\/p>\n

\u201cWhat is needed is a genuine effort by government to ensure that the Prompt Payment Code is enforced, otherwise jobs and company liquidations will be at risk.\u201d<\/p>\n

Creditsafe UK and Ireland chief executive Chris Robertson said cashflow was often a \u201ccritical concern\u201d for small businesses.<\/p>\n

\u201cThey rely on a steady income stream to cover expenses and maintain operations. When a payment from a customer is delayed or not received at all, it can create a significant financial strain, and in some cases can even result in being unable to meet their financial obligations and possible closure,\u201d he added.<\/p>\n

A survey reported last week that a quarter of SMEs see survival<\/a> as their main goal in 2023.<\/p>\n

Meanwhile, the vast majority \u2013 75.2 per cent \u2013 of construction companies with fewer than 250 employees reported that their energy costs had risen over the past six months; 60.7 per cent noted an impact on profitability; and 43.6 per cent said they had to access additional finance purely to cover higher bills.<\/p>\n

Construction News\u00a0<\/em>reported earlier this month that\u00a023 firms fell into administration in December<\/a>\u00a0\u2013 fewer than in November but more than the monthly numbers for August, September and October last year. The majority were SMEs.<\/p>\n

Last year the sector also lost its red diesel tax breaks<\/a>, which\u00a0CN\u00a0<\/em>reported would further squeeze firms struggling to make ends meet.<\/p>\n<\/p><\/div>\n

Related articles<\/h3>\n<\/p><\/div>\n

Read More<\/a>
\n Joshua Stein<\/p>\n","protected":false},"excerpt":{"rendered":"

More than half of all invoices sent to construction firms were paid late last year, an analysis has found. The proportion of late invoices \u201csignificantly increased\u201d to 52.9 per cent across the sector in 2022, a rise of 13 per cent compared with 2021. Data company Creditsafe looked at 21 sectors and found that only<\/p>\n","protected":false},"author":1,"featured_media":600858,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2808,36958],"tags":[],"class_list":{"0":"post-600857","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-construction","8":"category-payment"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/600857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=600857"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/600857\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/600858"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=600857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=600857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=600857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}