Construction company Laing O’Rourke has been reinstated to the Prompt Payment Code (PPC). The company has been reinstated to the Government’s code seven months after being removed for failing to pay suppliers on time. The Prompt Payment Code is a voluntary code which is administered by the Chartered Institute of Credit Management (CICM)on behalf of the Department for Business, Energy and Industrial Strategy (BEIS). Signatories pledge to uphold its best practice for payment standards to end the culture of late payment.
Laing O’Rourke, the country’s biggest private contractor, has now set out its action plan to shorten payment times. In its latest six-month returns Laing O’Rourke show that between April – September, they paid 94% of invoices by value within 60 days.
Judged by volume, which is the Government’s preferred measure, 79% of invoices were paid under 60 days, which is a 22% improvement on the Oct 2018 to March 2019 returns that got them suspended.
The firm added that its payment performance was improving month-on-month, with 93% of invoices paid within 60 days in September as a stand-alone month.
John O’Connor, Group Commercial Director at Laing O’Rourke said “Laing O’Rourke values its supply chain partners who are integral to our ability to deliver world-class projects for our clients. The UK business set out a clear action plan to address prompt payment, which was agreed with the Chartered Institute of Credit Management. We are pleased that those actions, which have included investment in technology and a refinement in payment processes have seen improvements in supplier payments, resulting in our reinstatement to the Prompt Payment Code live list.”
Philip King, Chief Executive at the Chartered Institute of Credit Management said “Laing O’Rourke has demonstrated that the actions implemented through their plan have resulted in improved payment performance, with an ongoing upward trend. We are delighted that this has led to their reinstatement on the Prompt Payment Code.”
Laing O’Rourke said it will continue to follow its PPC action plan and will remain fully engaged with its suppliers and with the Chartered Institute of Credit Management.