- 04 Nov
Confirmed - Kier Suspended From The Prompt Payment Code
IMPORTANT NOTICE: THIS SITUATION HAS CHANGED POST PUBLICATION - SEE THE LINK TO THE PROMPT PAYMENT CODE BELOW FOR THE LATEST INFORMATION.
Others may have also been surprised to see that Kier are not shown on the Prompt Payment Code suspension list (as at the time of writing), despite media reports that they have been suspended for late payments. The PPC have just confirmed to me that Kier will be added to the suspension list later today/tomorrow.
Full Details Of the Kier Suspension
According to a report in theconstructionindex.com (04/11/19), Kier, Seddon Construction and McNicholas Construction have been suspended from the Prompt Payment Code, due to late payments.
Prompt Payment Code
The Prompt Payment Code (PPC) is administered by the Chartered Institute of Credit Management, on behalf of the Government's Department for Business, Energy & Industry Strategy (BEIS). Signatories to the code pledge to pay 95% of their suppliers invoices within 60 days.
A quick visit to the Prompt Payment Code site returned a list of temporarily suspended signatories (as at 04/11/19) as follows:
- AB World Foods
- BAE Systems Global Combat Systems Limited
- BAE Systems (Oman) Limited
- Balfour Beatty Plc
- British American Tobacco (Holdings) Limited
- British Sugar Plc
- BT plc
- Engie Services Limited
- Ferrovial Agroman (UK) Limited
- Fujitsu Services Limited
- Galliford Try PLC
- GKN Plc
- John Sisk & Son Limited
- Laing O’Rourke
- Persimmon Homes Limited
- PGDS (UK One) Limited
- R. Twining and Company Limited
- Vodafone Limited
Kier are still shown as signatories (at the time of writing), when you search for them on the PPC site. However, I have just contacted the PPC and they have confirmed that this is a timing issue regarding the updating of their list. They said that the list would be updated later today/tomorrow.
Kier Suspended From The Prompt Payment Code
The Kier suspension, as was reported, extended across 4 group companies:
- Kier Integrated Services Ltd
- Kier Infrastructure and Overseas Ltd
- Kier Construction Ltd
- Kier Highways Ltd
Late Payers Reinstated
According to the article, some late payers have also been reinstated to the PPC, as a result of improved payment performance since their suspensions earlier this year. These included:
- Alun Griffiths
- Kellog Brown & Root
- Severfield (Design & Build) Ltd
Late Payment Funding
If you are struggling because of late payments from any customers, even those within the construction sector (also if you are issuing applications for payment rather than sales invoices) there are forms of late payment funding that will bridge the gap until you get paid.
This type of late payment funding works by releasing a prepayment for the majority of the value of your invoice, or application for payment, when it is raised. The balance (less charges) is passed to you when the customer pays. Although it is better to be paid on time, his type of funding can improve your cash flow. Even if customers are paying to terms, receivables finance can generate similar prepayments against your outstanding invoices.