90% Of Subcontractors Experience Payment Delays

Almost 90% of British subcontractors are experiencing delays in payments beyond their contracted terms.

The statistics are part of a new survey by StreetwiseSubbie, which claimed that: "never in the field of construction was so much owed by so few to so many."

The survey of nearly 300 specialists indicates two-thirds are receiving less than their agreed payment, while 90% of firms claim main contractors have cost their business between £20,000 and £100,000 in the last year.

Founder Barry Ashmore said: "I have been in the industry for 40 plus years and have come through previous recessions, but never have I seen the industry in as dire state as it is today.


"It seems to me that the main contractors are expecting, as a matter of routine, to underpay or withhold money from those lower down the food chain. Specialist subcontractors are given ludicrous excuses for non-payment. And the contractors think it is an acceptable way to do business."

He continued: "Those main contractors who are fair and work closely with their subcontractors are in a very small minority. There just isn’t enough fair treatment, and it is sad to see subbies faith in the industry being destroyed.

"I believe that this unacceptable behaviour is being driven from the top, as contractors’ main board directors demand profits from their commercial directors and managers, who in turn put pressure on the QSs to deliver results.

"The contractors’ site teams are under pressure and are forced to withhold money from the subcontractors to cover up for their own mistakes."

(IT/GK)