Government 55-day average payment rule comes into forceContractors bidding for public works contracts worth over £5m must demonstrate they pay all invoices within 55 days, or face a public work ban.
The new stricter payment rules came into force from the 1st April and require firms to demonstrate they are paying 95% of invoices within 60 days, and also paying all their invoices within an average of 55 days.
This represents a tightening of the previous regime that required 85% of all supply chain invoices to be paid within 60 days in one of two previous six-month reporting periods.
Site labour rates start rising againLabour rates on construction sites last month moved closer to the all-time high seen at the end of 2023.
Latest figures from the industry’s biggest payroll provider show average earnings for self-employed tradespeople increased to £1,017 per week during February – almost the same as the December peak of £1,044.
Hudson Contract said this followed the usual poor month of January when earnings dipped due to bad weather and some sites being slow to reopen after Christmas.
Big social housing schemes at risk over funding uncertaintyJV North is warning house building will slow unless funding certainty is given beyond the current Affordable Home Programme end date.
With less than two years left of the 2021/26 Affordable Home Programme, JV North says developments of over 50 homes or those that take longer than 12 months are now at risk.
Usually government-funded programmes overlap with the last two running from 2018 to 2021 and then 2021 to 2026 allowing housebuilding to carry on unabated.
Fear of supply chain failures boosting collaborationAround nine out of 10 contractors say the biggest headache they currently face is industry supply chain fragility.
Fear of supply chain failure now dominates all other concerns like labour availability and materials cost and supply, according to consultant RLB’s annual procurement trends report.
But widespread concern about the supply chain in construction as pushed clients towards greater collaboration with contractors.
Sources
Government 55-day average payment rule comes into force | Construction Enquirer News
Site labour rates start rising again | Construction Enquirer News
Big social housing schemes at risk over funding uncertainty | Construction Enquirer News
Fear of supply chain failures boosting collaboration | Construction Enquirer News
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