Skanska is part of a group of nine organisations helping the government to ensure suppliers are paid on time.
The group, which includes companies and public sector bodies, will make up a new advisory board. It aims to strengthen the prompt payment code. The organisations, including Skanska, were selected because of their commitment to pay promptly.
The code was created in 2008 and sets out a series of principles to ensure that firms are paid fairly and quickly. Over 1,700 organisations have signed up. The prompt payment advisory board was created by the government following a consultation paper which suggested the existing code should be improved. It will monitor and promote awareness of the code and assess whether it needs to be updated.
The Department for Business, Innovation and Skills said it is committed to reducing the problem of late payments. It said there needs to be a cultural change and business and the government must work together to come up with solutions. The advisory board had its first meeting on 28 October and aims to produce proposals in spring 2015.
Skanska UK Finance Director (Operations) Kelly Gangotra welcomed the move: “We’re pleased to be part of this group. This is an important issue, particularly as the UK has such a large number of small and medium sized businesses. We believe in taking a collaborative approach with our suppliers.”