Galliford Try and Severfield latest firms to be chucked off Prompt Payment Code

Four construction firms are among the latest tranche of companies to be booted off the Prompt Payment Code as part of a crackdown on late payment.

Galliford Try, steel specialist Severfield, Welsh-based Alun Griffiths and Ferrovial Agroman have all been suspended for missing the Prompt Payment Code (PPC) target of paying 95% of invoices within 60 days.

As part of its plans to take late payment more seriously, the government has promised companies could be barred from winning public work from September unless they exceed this target.

The four construction firms were among a list of 18 companies to be suspended in the latest update. Others include BT, British American Tobacco and energy company Centrica.

According to its most recent payment data Galliford Try paid 75% of its invoices within two months, while Severfield paid 76%.

Alun Griffiths and Ferrovial paid 53% and 83% of invoices within the required 60-day period respectively.

Commenting on the latest suspensions, Chartered Institute of Credit Management chief executive Philip King, who chairs the PPC’s compliance board, said all but one of the 18 firms had already submitted action plans to achieve future compliance.

The latest suspensions come just under three months after Balfour Beatty, the country’s biggest contractor, Laing O’Rourke, the country’s biggest privately-owned contractor, and Interserve were suspended for missing the PPC target. They were joined by Costain, Engie and Persimmon.