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Prompt Payment Code | BUILDING MAGAZINE

Prompt Payment Code

Kier Construction has been reinstated to the Prompt Payment Code after improving its payment practices.

Kier Construction was one of four Kier companies suspended from the Prompt Payment Code on the 1st November 2019 by the Chartered Institute of Credit Management (CICM), which administers the voluntary scheme on behalf of the government.

Kier Integrated Services, Kier Infrastructure & Overseas and Kier Highways were also among the companies suspended at that time. These three Kier companies remain suspended.

However, Kier Construction announced on 20th December that it had been reinstated to the scheme’s membership following implementation of its CICM-approved action plan, which focuses on ‘supplier engagement & compliance, process simplification, guidance & training, e-invoicing and payment scheduling’.

Kier said that its payment transactions are now processed from its financial shared service centre, providing a more ‘consistent’ approach to payment.

Kier group chief executive Andrew Davies said: “Kier has been working with the CICM to address this important issue and we have been implementing approved action plans across the business”.

“We remain committed to paying all our suppliers to agreed terms and have made significant improvements in our payment processes whilst continuing to offer our subcontractors, particularly SMEs. a range of accessible payment plans”.

CICM chief executive Philip King said: “As part of our work driving culture change to end late payments, we are working closely with Kier and are impressed with its level of engagement leading to a significant trajectory of improvements in payment days. This demonstrates the effectiveness of its action plan and we are delighted to reinstate Kier Construction Limited to the Prompt Payment Code”.