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Network Rail buys an awful lot of building work 鈥� something in the order of 拢4bn worth a year. The number of bridges, viaducts and tunnels alone comes to 40,000! Big customer. Big clout. I bet it is ever so tempting at this level to lord it over, domineer, even bully the contractors, the suppliers. And yet, what鈥檚 this? I am looking at a document headed 鈥淣etwork Rail fair payment charter鈥�. It鈥檚 dated 11 November 2011. It is signed by pretty well all of the great and good thick-skinned, hard-headed chiefs of contractors in this end of our business; signed, too, by Network Rail鈥檚 chief stoker.

This fair payment charter is signed by pretty well all of the great and good thick-skinned, hard-headed chiefs of contractors in this end of our business

It鈥檚 true. Thirty-three commanders-in-chief have penned their moniker to a pact. Something called the Commercial Directors鈥� Forum has been established 鈥渢o promote, support and influence commercial policy in the rail industry by encouraging collaborative working amongst Commercial Directors throughout the supply chain鈥�. In other words, Network Rail is going to pay on the nail and its contractors are not going to nail their subcontractors, nor beat up their subsubcontractors, nor the bloke that makes the thing that drills the hole that holds the spring that drives the rod that turns the knob that works the thingumabob.

This Fair Payment Charter is signed by folk such as Balfour Beatty, Amey, Atkins, Skanska, Carillion, Bam Nuttall and Costain (more names in a moment, I promise). They declare, nay swear, that companies throughout the supply chain have the right to 鈥渇air payment鈥� - that is 鈥渢o receive prompt, predictable and correct payment when due鈥�, and the right to 鈥渟tandard terms and associated administrative practices of payment such that they could reasonably be considered as fair鈥�.

More names 鈥� Hochtief, Thales, Arup declare: 鈥淒eliberate deferral, late payment or unjustifiable withholding of payment is ethically unacceptable鈥�, and 鈥淔air Payment will apply equally between the client and lead contractor and throughout the supply chain鈥�.

The light has dawned. There is only one real firm foothold for damned good service 鈥� it is to pay up and pay up quickly

More names 鈥� May Gurney, Jacobs, Siemens announce that 鈥渃orrect payment should reflect the works properly carried out and products and services duly supplied, including acknowledged additives, all being in accordance with the contract鈥�, and that 鈥渁ny withholding of payment due to defects, non delivery or the absence of proof, will be proportionate and demonstrably justified鈥�.

More names 鈥� Vinci, Volker Fitzpatrick, Laing O鈥橰ourke say: 鈥淐lient arrangements for retention will be replicated via matching terms throughout the supply chain where practical鈥� - or, by the way, Network Rail is going to stop retention all together.

The concordat goes on to promise that:

• Main contracts will have payment periods not exceeding 21 days from valuation date
• Subcontractors鈥� and suppliers鈥� payment will not be dependent on the pay date of a main contract
• Subcontracts will have payment periods not exceeding 28 days from the same valuation date
• Authors of subcontracts will be invited to include similarly short payment periods where appropriate
• To minimise payment delays, the client and all supply-chain members will agree payment procedures at the outset of their contracts

More names 鈥� Galliford Try, Delta Rail, Scott Wilson, J Murphy, Osborne, Tata, Spencer, Invensys, Colas Rail, Babcock - they all promise, and so does Network Rail, to 鈥渋ntroduce standard terms as necessary to support the aspired payment regime鈥�.

And you, if you are a cynic, might say these chaps have been bullied into this by this lord and master with a lot of work to get through. Tosh! These people know which side the bread is buttered. They know that what they have signed up to is precisely what the government is beginning to insist on for public contracts. The worst payers in the business once, these government departments, but the light has dawned. There is only one real firm foothold for damned good service 鈥� it is to pay up and pay up quickly.

Oh, and one other thing: I have worked out that these 33 signatories are sharing in 拢4bn worth of work. All in return for everyone paying everyone on time. Easy, isn鈥檛 it?

Tony Bingham is a barrister and arbitrator at 3 Paper 黑洞社区s, Temple