ICM leads drive for new Construction Supply Chain Payment Charter
Press Release – 23 April 2014
The Institute of Credit Management (ICM) is playing a lead role in delivering a new Construction Supply Chain Payment Charter that obliges signatories to adhere to 11 new ‘Fair Payment Commitments’.
The Charter, agreed by the Construction Leadership Council (CLC), the body set up to deliver the Government’s industrial strategy for construction, includes the commitment to reduce payment terms to 60 days with immediate effect, and 30 days from January 2018.
Other commitments made in the Charter include not withholding cash retentions, not delaying or withholding payment, and making payments electronically.
Any organisation that becomes a signatory to the Charter agrees to apply the fair payment commitments in its dealings with its supply chain; to be monitored for the purposes of compliance by reporting against a set of agreed key performance indicators (KPIs); and to consider the performance of its supply chain against those KPIs when awarding contracts.
The ICM has worked with the construction industry, the Department for Business, Innovation and Skills (BIS) and the CLC is drafting and agreeing the wording of the Charter over the last few months.
Philip King, Chief Executive of the ICM, is now leading the work to develop monitoring arrangements for the signatories who include British Land, Berkeley Group and Barratt Developments: “Monitoring compliance with the Charter will be central to its success,” he says, “and this will not be the task of the ICM alone.
“BIS, the relevant trade associations and those organisations in the CLC who have been involved in getting us to where we are today have a vested interest in promoting the Charter, and are indeed specifically tasked with attracting more signatories.
“The next step is to agree the key performance indicators by which signatories will be measured, and working to convey both the spirit and the actual meaning of this important new initiative to the widest possible audience.”
The Institute of Credit Management (ICM) is Europe’s largest credit management organisation, and the second largest globally. The trusted leader in expertise for all credit matters, it represents the profession across trade, consumer and export credit, and all credit-related services. Formed over 70 years ago, it is the only such organisation accredited by Ofqual and it offers a comprehensive range of services and bespoke solutions for the credit professional as well as services and advice for the wider business community, including the acclaimed ICM/BIS Managing Cashflow Guides (www.icm.org.uk).
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For further information contact Sean Feast, Gravity Public Relations 0207 330 8810 firstname.lastname@example.org