The Chartered Institute of Credit Management has revealed that Balfour Beatty, Costain, Engie Services, Interserve Construction, Kellogg Brown & Root, Laing O’Rourke and Persimmon Homes are among 12 businesses to have been suspended from the Prompt Payment Code (PPC) for not paying their suppliers in line with the Code.
The companies received a suspension, rather than an expulsion, because they have committed to make changes to meet the standards of the Code and pay suppliers promptly.
However, John Sisk & Son was one of five companies removed from the PPC for non-compliance and not providing a plan for how it will meet the terms of the Code.
The PPC Compliance Board regularly reviews the data reported by large companies under the Payment Practices Reporting Regulations to ensure they are upholding their commitments.
News of the suspensions builds on a government announcement in November, where failure of companies to demonstrate prompt payment to their suppliers could result in them being prevented from winning government contracts.
From 1 September 2019, any supplier bidding for a government contract above £5 million per annum will be required to answer questions about their payment practices and performance. The expected standard is to pay 95 per cent of invoices in 60 days across all their business.