Like anyother type of business, healthy cash flow is an important concern for steelstockists – and despite the high value of the commodity involved, it can take along time to get paid for supplying structural steel on some constructionprojects.
This is nowbeing tackled by a cross-party parliamentary inquiry, convened and chaired bythe MP Debbie Abrahams, that has compiled a list of 11 recommendations on how latepayment to all kinds of businesses can be tackled through the introduction ofnew legislation and codes of conduct.
Within theconstruction industry, the suggestion is to launch a code of conduct, alongwith a kind of escrow system for payments, where funds are held by a thirdparty until the conditions of a supply contract are met, and should then bereleased immediately to the supplier.
This canhelp to avoid accusations that the contract has not been fulfilled, or that thecustomer is deliberately delaying payment – and should help to prevent thealready infrequent disagreements that can occur between steel stockists and anynon-paying customers.
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