Following today’s announcement from the Government of a new crackdown on late payments, small builders finally have a real chance of seeing fairer, faster and more reliable payment terms across the supply chain, a long‑overdue step towards tackling the poor practices that have held construction SMEs back for years, according to the Federation of Master Builders (FMB).
Brian Berry, Chief Executive of the FMB commented: “Small, local builders have been battling a culture of slow and unfair payment for years, and it hits them harder than anyone else in the supply chain. Too many SMEs are kept waiting by major contractors who treat long payment terms as standard business practice. If these reforms finally force the worst offenders to change their behaviour, it will give our members more certainty to plan workloads, invest in kit, and operate on a level playing field.”
Berry continued: “The proposed ban on withholding retention payments in construction is especially significant for our members. Retentions have been a major issue for small businesses for far too long, as too many SMEs are left carrying the risk when money they’ve already earned is held back for months on end. What our members want is simple: fair, reliable payment for work done, and a supply chain that treats small builders with the respect they deserve.”
