What Is BESA’s Payment Hub?
The Payment Hub is a central resource for contractors, suppliers, and clients in the building engineering services sector. It provides practical guidance on fair payment, dispute resolution, retentions, security of payment, and tools like Project Bank Accounts to help protect cash flow and improve business resilience.
Who Is The Small Business Commissioner?
The Small Business Commissioner (SBC) is an independent UK government office that helps small businesses resolve payment disputes with larger customers. The SBC promotes fair payment practices, provides free advice, and can investigate complaints about late or unfair payment terms.
What Are “Retentions” And Other Forms Of Security?
Clients withhold a percentage of payment (typically 3–5%) until the project is complete or any defects are rectified. This practice protects the client but can reduce the contractor’s cashflow. Alternatives include performance bonds and parent company guarantees, which provide financial assurance without requiring cash collateral.
What Is The Fair Payment Code?
The Fair Payment Code (FPC) is a UK government-backed, voluntary scheme that recognises businesses for paying suppliers on time. It replaces the Prompt Payment Code and introduces Bronze, Silver, and Gold tiers based on payment speed - certification signals to clients, suppliers, and the public that you operate fair and transparent payment practices.
What Are Project Bank Accounts (PBAs)?
PBAs are ring-fenced bank accounts used on construction projects to pay all supply chain members directly and simultaneously. They reduce the risk of non-payment if a contractor becomes insolvent and help maintain cash flow, particularly for SMEs. PBAs are most common on public sector projects and larger contracts.
How Can These Measures Help My Business?
Adopting fair payment practices and using tools like PBAs can:
- Improve cash flow and reduce borrowing costs
- Protect your business from insolvency in the supply chain
- Strengthen relationships with suppliers and clients
- Improve your eligibility for public sector work
- Demonstrate your commitment to ethical business practice
How Do I Get Started?
Visit each topic in the Payment Hub for step-by-step guidance, templates, and links to official resources. BESA members can also contact the Legal & Commercial team for tailored advice.
