McNicholas Construction Services Ltd was suspended from the Code on 2 November 2019, alongside other Kier entities, after failing to meet key requirements around the payment of suppliers within a 60-day window. Kier subsequently worked across the Group to remodel finance and payment processes, including a major commitment to the quicker payment of small business debtors.
Following the integration of these changes, the return of McNicholas Construction Services Ltd as a code signatory today (Thursday 17 December) marks the completion of Kier’s work to move all of its entities on to Prompt Payment Code eligibility status.
Interim Small Business Commissioner Philip King said: “It’s extremely satisfying to see McNicholas Construction Services Ltd return as a signatory of the Prompt Payment Code. Over recent months I have worked closely with Kier to meet its ambition of overall business compliance with the Code, and it’s satisfying to see these efforts pay off on behalf of UK small businesses.
“Work that my staff and I continue to do, in order to make Code membership the default payment standard for large businesses to adhere to in the UK, is borne out by the commitment we see from Kier today. We will continue to advocate for small business owners across the UK and work to ensure that large businesses maintain a clear cashflow to their small business supply chain.”
Andrew Davies, chief executive at Kier Group, said: “This achievement is testament to the hard work of teams across the Group. It shows our commitment to growing and maintaining relationships with our supply chain, many of whom are long-standing partners of Kier.
“We acknowledge, that this year it has been more important than ever to pay our suppliers in a timely manner. We will remain committed to further improvements in our payment practices, allowing us to continue working with the best supply chain partners.”
In a separate reinstatement, AB World Foods was suspended from the Code on 17 July 2019. After making significant and considered changes to finance systems and payment processes, the company was returned as a code signatory today (Thursday 17 December).
Contact: Ian Dexter 0121 221 2510
Notes to editors:
The Prompt Payment Code, administered by the Office of the Small Business Commissioner on behalf of the Department of Business, Energy and Industrial Strategy (BEIS), is a voluntary code of ethics that businesses can join to demonstrate their commitment to paying small business owners and suppliers on time.
A commitment to the Code also covers clear guidance on payment terms and work to encourage others in related supply chains to sign up too. Signatories to the Code must agree to pay 95% of all invoices within 60 days, and work towards adopting 30 days as standard, to avoid smaller businesses in the supply chain suffering financially.