CECA probes 10-day payment sign-up

The Civil Engineering Contractors Association (CECA) has written to the chief executive of every local authority in England in a bid to check that they are following up the government's commitment to 10-day payment.

Business secretary Peter Mandleson announced in October that suppliers to the public sector would be paid within 10 days, in a bid to help out struggling SMEs.

But it is not known at this stage how rigourously the commitment to pay quickly is being enforced, particularly at local authority level.

CECA plans to use the information to gain an overall impression of how well the new payment practices are being adopted across the country, and if necessary to point out problem areas.

A spokesman told CJ: "Our aim is to gain as complete a picture as we can on the support being offered by local authorities to contractors. Local authorities purchase a lot of construction, not least infrastructure, and it would certainly help the smaller members if laudable aims to pay within 10 days are followed through."

The letter, seen by CJ, asks local authorities: "Does your organisation have in place measures to help suppliers who may be experiencing difficulties in the current economic climate?"

It also asks: "Is your organisation committed to paying suppliers, wherever possible, within 10 days, in line with the commitment by central government and regional development agencies made in October 2008?"

CECA hopes to present its findings to the Local Government Association in mid-February, once it has received responses from the local authorities.

If your company is experiencing problems getting paid on time for public sector work, email: neil.gerrard@rbi.co.uk