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Fri December 13 2019

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Prompt Payment Code reinstates Laing O’Rourke

22 Nov Laing O’Rourke has been reinstated to the Prompt Payment Code live list after a seven month suspension.

Laing O’Rourke was suspended from the code in April 2019 for failing to pay its suppliers on time. It has now satisfied the Chartered Institute of Credit Management, which manages the scheme on behalf of the government, that it has reformed its behaviour.

John O’Connor, group commercial director at Laing O’Rourke, said: “Laing O’Rourke values its supply chain partners who are integral to our ability to deliver world-class projects for our clients. The UK business set out a clear action plan to address prompt payment, which was agreed with the Chartered Institute of Credit Management. We are pleased that those actions, which have included investment in technology and a refinement in payment processes have seen improvements in supplier payments, resulting in our reinstatement to the Prompt Payment Code live list.”

Philip King, chief executive at the Chartered Institute of Credit Management said: “Laing O'Rourke has demonstrated that the actions implemented through their plan have resulted in improved payment performance, with an ongoing upward trend. We are delighted that this has led to their reinstatement on the Prompt Payment Code.”

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Several major construction companies remain suspended, however, and have yet to demonstrate improvements in supply chain practices. These include Balfour Beatty, Eurovia Infrastructure, Ferrovial Agroman (UK), Galliford Try, Kier (four separate Kier companies), John Sisk & Son, McNicholas Construction Services, Persimmon and Seddon Construction.

Costain and Interserve were suspended in April 2019 but were reinstated three weeks ago, along with Alun Griffiths, Severfield and Kellogg Brown & Root.

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