The Construction Leadership Council (CLC) has issued a statement on payments and contracts, urging clients to continue to pay suppliers at risk due to COVID-19 until at least the end of June 2020.
The CLC is increasingly concerned about the management of payment in the supply chain, and the risk that clients and firms will seek to invoke contractual clauses to the detriment of other firms.
The CLC said: “We are clear that all construction businesses should continue to pay in accordance with agreed contractual terms. Similarly, firms should not be threatening to invoke penalty or other contractual clauses, when it should be the priority of all clients and firms to sustain the industry. Our actions at this time will be remembered. All firms should think hard about how their reputation could be damaged by not doing the right thing.”
You can read the statement here.
