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Survey reveals payment abuse is harming contractor’s wellbeing

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A survey conducted by the Prompt Payment Directory and the Specialist Engineering Contractors’ (SEC) Group has revealed that 90% of construction business owners are reporting a range of mental health issues – from stress to suicidal feelings – as result of payment abuse.

According to the British Constructional Steelwork Association (BCSA), the collapse of a string of several specialist subcontractors after they were left with bad debts from main contractors only reinforces the need for government and industry to act to stop payment abuse.

The BCSA and SEC Group are urging the next Government to adopt a range of measures including 30-day payment terms on all public sector contracts and sub-contracts, penalties on serial late payers, the use of project bank accounts in public sector construction/infrastructure projects, and protect cash retentions in a secure account for firms in construction supply chains.

In her May 2018 report, Building a Safer Future, Dame Judith Hackitt said that poor payment practices drove poor behaviours which, in turn, produce poor quality buildings.

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