Laing O’Rourke values its supply chain partners. They are integral to our ability to deliver world-class projects for our clients.
We are committed to the prompt payment of our suppliers, and while we endeavour to pay invoices within agreed terms, we recognise that our payment practices currently fall short of the Prompt Payment Code’s (PPC) requirement of paying 95% of invoices within 60 days. Laing O’Rourke is committed to improving its payments performance and delivering on the actions submitted to the PPC in May 2019.
The UK business continues to progress and focus upon its issued PPC action plan, and based upon improving performance against the PPC criteria, we are at an advanced stage of dialogue with the Chartered Institute of Credit Management regarding reinstatement to the PPC and we expect reinstatement by the next reporting date.
Click here to read our Prompt Payment Code Action Plan.
UK construction working capital and supply chain payments
The UK business is targeting improvements in its supplier payments and is fully engaged with the current discussion regarding payment practices.
In addition, the Board believes that alongside this discussion the industry needs to provide a more strategic response to the credit issues within the UK construction sector, which have continued more than ten years after the peak of the last UK recession.
This is an excerpt from the Laing O’Rourke Annual Report for the year ended 31 March 2019. Click here to read the statement in full.