The charter, which has been signed by the biggest construction and engineering companies in the rail industry, is aimed at increasing liquidity through the rail supply chain as Network rail spend £7bn on renewals over the next two years.
Network Rail will reduce its own payment terms from 56 to 21 days and asks its suppliers to pay first-tier subcontractors within seven days of receiving payment. Therefore first-tier subcontractors should receive payment within 28 days.
Simon Kirby, managing director, Network Rail infrastructure projects, said: “The Fair Payment Charter is a statement of how the rail industry wishes to do business. Applying these principles will be a significant catalyst in improving cash flow across the industry, benefitting suppliers and contractors of all sizes throughout the supply chain.”
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Network Rail Fair Payment Charter signatories:
- Network Rail
- Railway Industry Association
- Civil Engineering Contractors Association
- Amey
- ARUP
- Atkins
- Babcock
- Balfour Beatty Civil Engineering
- Balfour Beatty Rail Projects
- BAM Nuttall
- Carillion Construction
- Colas Rail
- C Spencer
- Costain
- Delta Rail
- Galliford Try
- Hochtief
- Invensys
- Jacobs
- J Murphy
- Kier Construction
- Laing O’Rourke
- May Gurney
- Osborne
- Siemens
- Signalling Solutions Limited
- Skanska
- Tata
- Thales
- URS Scott Wilson
- Vinci Construction
- Volker Fitzpatrick
- Volker Rail
