Government to penalise late payments
Original Article Summary
There will be a 60-day time limit on large firms paying their suppliers after the government unveiled late payment reforms – garnering praise from the National Federation of Builders (NFB). There will also be mandatory interest on late payments, with commercial contracts including statutory interest set at 8% above the Bank of England base rate. […] The post Government to penalise late payments appeared first on PropertyWire.
PropMatch Curated Analysis
Government introduces mandatory 60-day payment terms for large firms with 8% statutory interest on late payments and bans construction retentions. This will significantly impact development project cash flow and financing structures for property investors and developers.
Investor Relevance
These reforms will directly affect development costs, contractor relationships, and project financing for property investors. Developers may face higher upfront costs without retentions as security, while potentially benefiting from more predictable payment schedules from their own suppliers and contractors.
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