NFRC鈥檚 latest State of the Roofing Industry report, covering the third quarter of 2024, found that 45% of respondents experienced delays getting paid.
The proportion of roofers not getting paid within 45 days of completion rose to 39% in quarter three, up from 29% in quarter two. This follows a trend that has seen a steady increase in late payment since the NFRC began surveying its 1,200 member firms in 2020.聽
鈥淧oor payment practices continue to unfairly strain the finances of roofing and cladding businesses during a period of record insolvencies within construction,鈥� said NFRC chief executive James Talman.
鈥淟ate payments put firms at risk of never being paid and numerous NFRC Members experienced heavy losses when ISG collapsed,鈥� Talman said.聽
鈥淪ome companies exploit the lack of accountability and consequences for late payment at the expense of those smaller businesses they subcontract to, and it harms the sector鈥檚 productivity.
"ISG were awarded substantial contracts by the government framework for public sector contracting (schools and academies etc). How has the supply chain been let down so badly? The cash flow management challenges the construction sector is subject to do not have to be so crippling. At the very least, there must be safeguards in place to ensure government work is awarded to stable businesses who pay their suppliers and subcontractors on time.鈥�
He said that the Fair Payment Code and new reporting duties were inadequate.
鈥淭he government will have to go much further than a voluntary code and badges to combat endemic late payments that unfairly benefit those who exploit agreed terms.鈥�
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