Vistry and McAlpine top the list of quickest paying contractors with Barratt top of the tree for housebuilders

Payment times for a third of contractors and housebuilders are now faster than the government target of 30 days, according to new data.

The time it takes for supply chain firms to be paid has also increased again by one day despite the pressures of the pandemic, the figures from Build UK members show.

Vinci and Sir Robert McAlpine topped the list as the fastest paying contractors, with both taking an average of 24 days to settle their invoices.

Costain, Morgan Sindall, ISG, McLaren, Willmott Dixon and Robertson were hot on their heels, with all taking an average of less than 30 days to pay invoices. 

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Contractor members are now reporting an average of 34 days to pay invoices, down from 35 days six months ago and 45 days when the Build UK table was first published in July 2018. 

On average, they now pay 94% of invoices within 60 days, up from 82% three years ago, and 79% of their invoices are paid within terms, compared to 61% in 2018.

Build UK said that a third of its contractor members now pay in an average of 30 days or less, with two thirds paying in 35 days or less.

The slowest paying contractors were Seddon, which took an average of 49 days to pay, Bam, with an average of 46 days, and Engie, with an average of 45.

Of nine housebuilders surveyed, Barratt was the fastest payer with an average of 22 days.

Redrow was close behind with an average of 24 days and Persimmon in third place at 26 days.

The slowest payers were Vistry at an average of 44 days, Scottish housebuilder Miller Homes on 41 days and Crest Nicholson on 39 days. 

Main contractors are now required to pay small businesses within 30 days under the Government’s Prompt Payment Code.

Following a tightening of the rules for smaller firms last month, signatories to the code will need to demonstrate they have paid 95% of invoices from businesses with fewer than 50 employees within 30 days.

Clients and main contractors must still pay larger firms 95% of invoices within 60 days, except the public sector which must pay within 30 days.

Payment times for main contractors
Firm Average days to pay invoices % invoices not paid within terms % invoices paid within 60 days
Vinci 24 15 95
Sir Robert McAlpine 24 18 96
Costain 25 19 95
Morgan Sindall 27 9 98
ISG 28 13 98
McLaren Construction 28 38 96
Willmott Dixon 29 10 99
VolkerWessels 29 24 96
Robertson Construction 29 37 95
Osborne 30 23 93
Tilbury Douglas 30 39 95
Lendlease 31 7 97
Laing O’Rourke 31 19 93
Kier 31 28 90
Amey 31 38 93
BAM Construct 32 26 96
John Sisk & Son 32 26 93
Mace 32 29 90
Wates 35 21 95
Murphy 36 23 83
Winvic Construction 37 14 97
Bowmer and Kirkland 37 27 95
Galliford Try 38 10 95
Multiplex 38 20 88
Canary Wharf Contractors 38 21 89
Bouygues 38 22 93
Balfour Beatty 38 26 92
Skanska 41 10 89
Graham Construction 42 18 90
Engie 45 1 96
BAM Nuttall 46 24 90
Seddon 49 15 96
Payment times for housebuilders 
Firm Average days to pay invoices % invoices not paid within terms % invoices paid within 60 days
Barratt Developments 22 16 99
Miller Homes 23 41` 90
Crest Nicholson 29 39 89
Bloor Homes 4 38 90
Taylor Wimpey 20 37 94
Bellway Homes 23 35 95
Persimmon Homes 19 26 96
Redrow Homes 8 24 97
Barratt Developments 16 22 99
Crown House Technologies 12 31 91