Carillion issues ultimatum over controversial accreditation and payment terms
In a move that has angered subcontractors, the firm has sent a letter to companies that worked for Mowlem telling them that they must accept its policies by the end of next month. These involve:
Registration with the National Britannia Safe Contractor accreditation scheme, at a cost of between £100 and £500 a year
Mandatory acceptance of a 65-day payment period, double the industry average.The letter from Carillion says:
“If you are unable to accept these terms we will need to review the business that you do with our group.”
Although several contractors ask subcontractors to comply with safety accreditation schemes, it is understood to be rare for a contractor to demand compliance with one scheme because of the costs involved in meeting different requirements for different contractors.
The 65-day payment period was revealed in Building in June as Carillion standard practice.