27.01.12
Faster payments for rail suppliers
Network Rail is cutting payment times to suppliers from 56 to 21 days, while suppliers’ own first-tier sub-contractors will be paid within seven days of receiving payment.
It comes as a result of the creation of a Fair Payment Charter aimed at improving payment terms and speeding up payment times for rail industry suppliers and sub-contractors. Network Rail’s charter has been signed by 30 of the country’s biggest construction and engineering companies.
Network Rail is set to deliver £7bn of renewals and enhancements over the next two years. It is also in the process of phasing out retention in contracts to improve cash-flow through the system.
Simon Kirby, managing director of Network Rail infrastructure projects, said: “The Fair Payment Charter is a statement of how the rail industry wishes to do business. Applying these principles will be a significant catalyst in improving cash flow across the industry, benefitting suppliers and contractors of all sizes throughout the supply chain.”
Suzannah Nichol, chief executive of the National Specialist Contractors Council, said: “Facilitating collaborative working and providing certainty of cash flow will enable specialist contractors to do what they do best and focus on the efficient and cost-effective delivery of the country’s rail infrastructure.”
Jeremy Candfield, director general of the Railway Industry Association, said: “This is another key step in the transformation of supply chain relationships that we and Network Rail have been working hard to achieve, essential for delivering the efficiencies demanded by tomorrow’s railway.”
The signatories of the Charter are:
Network Rail
Railway Industry Association
Civil Engineering Contractors Association
Amey
ARUP
Atkins
Babcock
Balfour Beatty Civil Engineering
Balfour Beatty Rail Projects
BAM Nuttall
Carillion Construction
Colas Rail
C Spencer
Costain
Delta Rail
Galliford Try
Hochtief
Invensys
Jacobs
J Murphy
Kier Construction
Laing O’Rourke
May Gurney
Osborne
Siemens
Signalling Solutions Limited
Skanska
Tata
Thales
URS Scott Wilson
Vinci Construction
Volker Fitzpatrick
Volker Rail
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