Government clients shun fair payment standard

The government's Construction Commitments were published by the Strategic Forum in June and include guarantees that departments will only work with contractors who pay suppliers within 30 days. All the government's biggest clients signed up to the standards.

However, Building magazine reports that Carillion's 2012 Olympics media centre contract, awarded two weeks ago, does not state when suppliers must be paid, even though the contractor uses a 65-day payment deadline on some contracts.

The Department for Health and the Highways Agency also confirmed that it would not exclude companies from bidding that failed to meet the standards. And even the Office of Government Commerce, which oversees public sector procurement, said payment policy would 'feature' in selection criteria, but would not be grounds for excluding bidders.

Carillion said it has no plans to change its policy, which led Building to suggest that the charter might be considered a sham by many in the industry.