27 July 2009 | Jake Kanter
Suppliers in the construction industry are still being subjected to late payments.
According to a second quarter survey by the National Specialist Contractors Council (NSCC), which has around 7,000 industry members, only 9 per cent of construction vendors are being paid within 30 days.
The majority of contractors, 71 per cent, were paid between 30 and 60 days. And 20 per cent of suppliers had to wait longer than 60 days.
The figures were a slight improvement on those recorded in the first quarterly "state of the trade" survey earlier this year, when only 5 per cent of vendors received payment in 30 days and 22 per cent had to wait longer than 60 days.
Earlier this month Rok became the latest construction firm to extend its payment terms. The Forum of Private Business entered the company into its "hall of shame" as a result, although Rok said the terms were in line with the majority of the industry (Web news, 6 July).
The study also found only 16 per cent of suppliers are working at 90 per cent capacity or more - the lowest level since 1998. The NSCC said the construction industry remains "gripped" by recession, and one member described market conditions as "brutal".