A new EU Directive has been welcomed by The National Specialist Contractors' Council (NSCC) and will see the principles of fair payment outlined in its Fair Payment Campaign being extended throughout Europe.
The Government recently responded to a consultation undertaken last year on implementing legislation to tackle late payment by businesses and public authorities across all EU member states. Now it has confirmed that the Directive will be implemented into UK law on 16 March. Contracts concluded before this date will be excluded from the amended provisions so that businesses do not have to make amendments to existing contracts.
NSCC says the Government's position reflects the response it submitted in support of proposals including maintaining 30-day payment terms for public sector projects, rather than stretching them to 60 days. The Directive mirrors existing UK provisions and will create a level playing field for UK businesses trading in other EU member states. The Late Payment of Commercial Debts Act will be amended to transpose the requirements of the Directive, although the current three tier charge for recovering debts will remain the same.
In its response the Government highlighted the importance of accurate invoicing, establishing clear payment terms in contracts and carrying out credit checks on potential customers, which is all part of the guidance and support promoted to specialist contractors through the NSCC's Fair Payment Campaign.
Suzannah Nichol, NSCC chief executive, said: 'We are delighted that the Government has supported the new Directive which marks another significant step towards realising the principles of the Fair Payment Campaign. The UK Government is leading the way on fair payment and the new legislation will help SMEs in the construction industry to get paid on time across the EU, which will have a positive impact on the economy.'
