Carillion may go down in construction industry history for the introduction of its 120-day payment terms - but other major UK contractors are now considering following suit.
For the last six months, the name Carillion has been used as a byword both for the outrageous treatment of subcontractors, and for efficient, transparent payment - depending on who you talk to.
The contractor, once again ranked second in the CN100 index of the UK’s top contractors, has been upfront about the scheme from the start.
It has been willing - nay, keen - to take on the scheme’s critics and explain why it thinks implementing 120-day payment terms is fair payment because subbies can choose to be paid earlier - for a fee.
This week, Construction News has spoken to two contractors - Galliford Try and Willmott Dixon - who say they are considering implementing a similar scheme. Balfour Beatty has also confirmed it will implement an early payment system for its suppliers “within the next few weeks”.
But others remain unconvinced of the benefits - fair or otherwise. Bam Construct, Skanska and Interserve have all confirmed they will not be moving to an equivalent early payment facility.
Interserve, which recently topped the Cabinet Office’s league table of contractors’ spending on SMEs, has this week given Construction News an insight into the way it is making the most of mapping technology.
It shows clients all the suppliers with whom they have strong relationships and an assessment of their performance - simple but effective. The firm’s turnover grew 6 per cent and operating profit 8.9 per cent last year, strengthening its position as the UK’s seventh largest contractor in the CN100.
All the data you need
The full CN100 index - plus a wealth of valuable analysis of the performance of the top 100 contractors, leading specialists, top consultants and housebuilders is in the CN100 supplement accompanying this week’s issue. It is also online in the data section of our website, with interactive tables on our data tool CNinsight.
As the industry gears up for that ‘back to school’ feeling that prevails in early September, Construction News has this week mapped out all the Priority School Building Programme batches so far.
Autumn is also the time we open the Construction News Specialists Awards for entries each year. I’m delighted that this year we - and you, I hope - will be celebrating the awards’ 10th anniversary.
With recovery on the horizon, there is no more valuable time to prove you are one of the best specialist contractors in the UK. Ours are the only national specialists awards - I do hope you will enter, or encourage your best suppliers to do so.