Willmott Dixon to pay subbies faster
Willmott Dixon has announced that it will introduce an early-payment scheme for suppliers.
Subcontractors will be charged 2% interest on their money so they can receive payments two weeks ahead of Willmott Dixon’s usual payment terms of 42 or 30 days.
The “EarlyPay” scheme will start in May 2014 and will be available to Willmott Dixon’s list of Category “A” suppliers which are 650-strong .
Carillion and Balfour Beatty already operate similar “EarlyPay” scheme which initially sparked an outcry but have now been welcomed by many subcontractors because they provide certainty of payment within a given period of inviocing.
Willmott Dixon said its scheme is “completely voluntary” and will be run in conjuction with Lloyds Bank which is still goverment owned.
Group Chief Executive Rick Willmott commented : “It is absolutely in our interests that our supply chain partners are successful, remain liquid and are profitable.
“Healthy cashflow is an essential element of our industry’s ability to operate and we have deliberately created an early payment system that is both transparent and advantageous to our suppliers should they choose to opt in.
“I believe EarlyPay is exactly that and if asked would Willmott Dixon sign up to a similar scheme with the same terms and conditions, it would be an unequivocal yes.”
So this seems like a win for the contractors who haae always had trouble getting payments form large companies.