About the Fair Payment Campaign
The Fair Payment Campaign is designed to improve payment practices in the construction industry. With backing at the highest level, the campaign calls for proper and timely payment and the elimination of retentions throughout the supply chain to improve the quality and delivery of construction projects.
- Certainty of Payment - Specialist Contractors should be told for every payment how much they are going to receive and when they are going to receive it, and the campaign promotes a payment process whereby the amount applied for becomes due if it is not contested within a certain period of time.
- 30-Day Payment - The Governments in England, Wales and Scotland have made payment within 30 days throughout the supply chain a contractual requirement on central Government contracts, and we are calling for the principle of 30-day payment to be extended to all construction projects.
- Removal of Retentions - The withholding of retention is an outdated practice in the modern construction industry with the best guarantee of quality being the choice of a competent and qualified supply chain.
Building on Success
The Fair Payment Campaign has raised the profile of the fair payment issue and transformed the business environment for Specialist Contractors. When the Fair Payment Campaign was launched in 2007, there were no expectations regarding payment practices in the industry and 100 days or more wasn’t unusual. Today fair payment is accepted as a key principle for a successful project with 30 days and no cash retention recognised as the best practice standard.
The Fair Payment Campaign has:
- Established 30-day payment terms as the expectation within the industry
- Led to payment within 30 days being required on Government projects
- Changed the Construction Act to improve certainty of payment to the supply chain
- Published guidance enabling the supply chain to get paid on time
- Resulted in a clear and effective No Retention Policy.
The Fair Payment Campaign provides a range of support to help Specialist Contractors protect their money including checking the credit worthiness of potential clients, getting their contracts right, improving cash flow, and resolving disputes.