Campaign group Streetwise Subbie surveyed 216 specialist contractors and found that 95% were being paid in excess of 30 days on publically funded projects, despite government鈥檚 鈥�30 day payment promise鈥�.
On private sector projects, fewer than 9% are getting paid within 30 days.
Of the firms surveyed, 78% have a turnover of more than 拢1m and 14% turn over more than 拢5m.
The survey also found that 84% of respondents thought that the remedies available to get paid the correct amount and on time, such as the Construction Act, adjudication or litigation are unsuitable, do not work, and need changing.
In a report on the survey鈥檚 findings, Streetwise Subbie founder Barry Ashmore says: 鈥淭o a small business, payment terms exceeding 30 days can mean the difference between survival and failure, with labour and material costs eating away at their cashflow while the [main] contractors hold onto the money they so desperately need. And if you have ever run a specialist contracting business, you would know that delaying payment to your labour force or suppliers isn鈥檛 an option. The lads walk, and the suppliers put you on stop!鈥�
He continues: 鈥淥ne of the saddest calls I鈥檝e had was from a lady who had run up personal debts of 拢100,000 trying to keep her husband鈥檚 shop-fitting business going. The contractor had piled more and more variations on them and demanded that they did the work, but then didn鈥檛 pay them, leaving them no alternative but to fold the company.
鈥淗ow many families have been devastated by similar disgraceful payment practices?鈥�
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