Public sector giant slashes payment deadline from 56 to 21 days
Network Rail has promised to slash payment times to contractors from 56 days to 21 days.
The new regime came into force on 1 Octboer and applies to Network Rail’s standard payment terms for investment projects works contracts.
The new standard assumes payments will be made in seven days from the point of certification, which compares favourably with long-standing industry model forms proposing payment times of 28 days and less.
David McLoughlin, finance and commercial director, Network Rail investment projects, said: “We want to improve the way we pay our contractors and suppliers and this revision to our payment terms will significantly shorten the time taken for Network Rail to complete payment. Suppliers and contractors of all sizes will now have much greater certainty over cash flows.”