Which 5 companies have been removed from the Prompt Payment Code (PPC)
The prompt payment Code register was set up so that companies would agree best practice for payment standards this was to manage and control the late payment culture in all industries but is particularly relevant to the construction industry. Companies commit to pay 95% of all supplier invoices within 60 days.
The first review of companies has been released and this report has identified 17 businesses to be removed or suspended. More are expected in the second phase being reviewed at the moment.
Five companies have been removed from the Code for non-compliance and not providing a plan for how they will meet the terms of the Code. They are:
- BHP Billiton
- DHL
- GKN Plc
- John Sisk & Son Limited
- R. Twining and Company Limited
Twelve businesses have been suspended from the PPC, for not paying their suppliers in line with the Code, but they have committed to make changes to meet the standards of the Code and pay suppliers promptly. They are:
- Atos IT Services UK&I
- Balfour Beatty Plc
- British Sugar UK
- Costain Limited
- Engie Services Limited
- Interserve Construction
- Kellogg Brown & Root Limited
- Laing O’Rourke
- Persimmon Homes Limited
- Rolls-Royce Plc
- SSE
- Vodafone Limited
Companies are already taking action to improve, which is welcomed and supported by CICM. Interserve Construction, for example, has improved its performance based on an action plan agreed with the CICM, which has seen the business reduce the number of payments over 60 days by 10% over the second half of last year; the company is continuing to improve towards compliance over the next six months.
Businesses suspended from the Code then produce a plan of action on how they propose to comply within an agreed timescale.
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 September 1st, 2019, any supplier who bids 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% of invoices in 60 days across all their business.
