Costain was one of 17 companies removed or suspended from the Institute of Credit Management’s Prompt Payment Code in April 2019, but it has since demonstrated “real and fast progress” to ensure its suppliers are paid in line with the requirements of the code.
A Costain spokesperson said: “Costain was an early signatory to the Prompt Payment Code and we have taken action to ensure we comply. We are pleased that the implementation of an improvement plan, which included moving all our suppliers onto payment terms of 45 days or less, increasing the frequency of payments and improving our processes, has been successful in meeting the standard required to achieve reinstatement.”
Philip King, chief executive at the Chartered Institute of Credit Management, said: “Costain has not only been able to demonstrate that its payment performance has reached the required standard, but it is also trending upwards. We are delighted that this has led to their reinstatement on the Prompt Payment Code list.”
Other construction companies suspended from the code in April included Balfour Beatty, Interserve Construction, Kellogg Brown & Root, Laing O’Rourke and Persimmon Homes, while John Sisk & Son was removed completely for non-compliance.
A further 18 companies were suspended earlier this month, including Galliford Try, Alun Griffiths, Severfield and Ferrovial Agroman from the construction sector.