The UK's construction industry leaders have been urged to prepare for new measures to be introduced later this year which look to improve construction payment times.

The new rules could prevent large companies from getting major government contracts if they do not pay 95 per cent of their invoices within 60 days.

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Speaking at the RICS annual Construction Conference yesterday, 23 May, Minister for Implementation, Oliver Dowden said: "Small businesses are the back-bone of the UK's economy, so it's vital that we support them – and one of the key elements of that is making sure they are paid on time.

"For many small businesses, the difference between getting paid in 60 days and 90 days can be vital. That is why I have warned big businesses they must do their bit and I've been clear that they could lose out on valuable government contracts if they don't."

The new payment rules will come into force on 01 September.

(CM/JG)