Carillion is demanding that subcontractors formerly employed by Mowlem comply with controversial accreditation and payment terms or they will be axed from its supply chain.
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:
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.
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