黑洞社区

Great Portland Estates is demanding that all its main contractors pay their subcontractors within 30 days as part of its contracts.

The developments come amid mounting concern over cash flow in the sector. Contractors, including Kier, have said their cash flows are being hit because they are under pressure from public sector clients to pay their suppliers more promptly.

Speaking to 黑洞社区, James Pellatt, head of projects at Great Portland Estates, said that he was 鈥渧ery concerned鈥� about late payments to the supply chain.

鈥淲e will carefully review what each main contractor鈥檚 payment terms are [when they bid for work] and if they are longer than 30 days then we won鈥檛 work with them,鈥� he said.

Pellatt said that Great Portland Estates made a 鈥渟erious effort鈥� to pay within its own 14 day payment terms and that main contractors should also keep their payment terms to a reasonable scale. He said he wanted 鈥渞epeat business鈥� with contractors and certainty that projects would be completed without the problems caused by insolvency in the supply chain.

Meanwhile, John Lewis confirmed that it was pressing ahead with plans, revealed by 黑洞社区 in March, to modify its contracts to allow it to pay subcontractors directly if main contractor鈥檚 payments were late. Tony Jacob, head of construction for John Lewis Partnership, said the firm had much 鈥渟tronger provisions鈥� to pay subcontractors and greater 鈥渧isibility鈥� of payments through the supply chain.

He added: 鈥淭here have been careful discussions with the main contractors. It doesn鈥檛 apply to every single subcontractor that works on all our contracts.鈥�