Builders delay payments
Published: 20 September, 2012
DONCASTERr: Housebuilder Keepmoat has extended its standard payment terms by almost half.
One of its subcontractors says Keepmoat's term has grown from 35 to 49 days, and may even be extended to 60 days.
The extension of payment terms follows Keepmoat's merger with Apollo in March to become a £1bn newbuild, refurbishment and refurbishment and maintenance social housing company.
A Cabinet Office spokesperson said the issue of prompt payment is taken "very seriously" by the Government.
"The fact is that small companies waste time and incur costs when they have to run around chasing payments,the spokesperson said.
The change comes as builders, such as Willmott Dixon, have come under fire for charging a management fee on their preferred suppliers.