Standard Payment Terms For Subcontractors In the Construction Industry
As cashflows get tighter I currently have a disagreement over what payment terms are the industry standard for progress payments within the construction industry.
Terms are normally specified in the contract however what are fair terms? The main contractor will obviously try and suit themselves as to how late thay can pay.
My understanding however is that standard payment terms would be 30 days from the date of application for payment, stretching to 45 days being the latest date that the contractor can pay.
It is also my experience that Contractors regularly ignore the due dates and stretch credit to breaking point for a lot of small subcontractors.
I would be interested in anyone else's experience of getting paid and what the industry norm is for sub-contract work.
In particular is there anyone out there lucky enough to get paid within 7 days from the date of application or is that just fantasy land?
- Auto enrolment 162 2
- starting a ltd company with intangible assets 110 3
- Registration as self-employed 162 2
- Clients have been told I'm working from home 1,053 15
- Corporation Tax Software 407 12
- VAT on commision and connected persons 90 1
- Partnership Tax Return £100 penalty-was a tax return due in this case? 675 18
- How to end partnership for HMRC 106 1
- First year's sole trader accounts and 2014/2015 tax return 162 1
- Electric Vehicle company car battery rental - how is it taxed? 115 4
- Regular Director bonus 454 11
- Careers advice - is it worth moving from an SME to a corporate? 154 1
- BrightPay 1,099 35
- HMRC Summons for £14k 546 7
- SA REFUND; DEFRAUDED BY UNKNOWN PARTY 372 5
- Footballers Testimonials Taxable? 1,126 17
- BIK for an electric car 172 2
- New Practice - Accounting Software 3,642 90
- How do I save face? 2,412 14
- Goodie bag 3,128 72
- Possible Partnership? 698
- Tax and accounting treatment on long lease granted from freehold 539
- Fuming! 522
- New Fangled Penalties 468
- Purchase of property freehold - capitalisation of costs 337
- Charity dissolution and newly merged charity 278
- Moving away from CCH software 268
- Outsource Data Entry 259
- Lenovo – Superfish & Komodia – is your PC vulnerable 259
- Do I need a US Tax Identification Number to complete W-8BEN-E? 208