Construction Supply Chain Payment Charter

Introduction

The Construction Supply Chain Payment Charter, endorsed by the Construction Leadership Council and published by the Department for Business, Energy, and Industrial Strategy, sets out voluntary commitments aimed at ensuring fair and transparent payment practices within the construction industry. By promoting 30-day payment terms and reducing retentions, the Charter seeks to foster a more collaborative and resilient supply chain, thereby supporting the broader goals of the government’s industrial strategy for construction.

Overview of the Charter

The Charter aims to create a fair payment culture by introducing 11 key commitments, including the goal of achieving 30-day payment terms by January 2018. Initially, payment terms were set at 60 days, reducing to 45 days from June 2015. The overarching ambition is to standardise 30-day payment terms and eliminate retentions by 2025.

Commitments and Expectations