Be in control… Pay on time
Late payment or non-payment of subcontractors and suppliers has been an issue the construction industry has faced for decades, resulting in the industry being seen as one of the worst payers in the UK. This issue of payments flowing smoothly through the supply chain has been aggravated as many companies look to retain cash in times of increased difficulty financing projects. Apart from cash retention, a late payment can often result from failures in process, inconsistent working practices and lack of visibility of claims.
The Construction Act (1996) makes provision for a subcontractor to exercise their right to suspend (or part suspend) performance for non-payment and to claim for costs and extensions of time resulting from the suspension.
React to get a reaction
Subcontractors owed money will react in different ways but creating a frenzy in the press and on social media is on the increase. Recently we have heard about purposely damaged buildings, roads being blocked and other very public displays of “downing tools”. This causes reputational harm, delays and frustrations all round.
Get the process right
Open ECX have developed WebContractor, an online SaaS platform which allows tight control and complete visibility of the Applications for Payment process. Automated approval work flows, dashboards and comprehensive reporting help manage the process end to end across all projects.
Give your subcontractors a smarter way to work
Subcontractors submit their applications for payment via a simple to use online portal which kicks off a standardized, transparent workflow for verification, approval and payment. The WebContractor solution allows contractors and developers to create stronger working relationships with their subcontractors and maintain compliance with the UK Construction Act.
To find out more about WebContractor, please click here.