A COMPANY planning to build 200 homes on the edge of Chard has been slammed for failing to pay subcontractors on time.

Kier took 61 days or longer to pay more than a third of its subcontractors in the first half of 2018.

That is despite being signed up to the Prompt Payment Code, where signatories pledge to pay 95% of their invoices within 60 days.

This means that nine months after Carillion, fair payment is still a dream for SMEs, according to the National Federation of Builders (NFB).

Kier took over the site in Holbear after Gladman Developments had an outline planning application for up to 200 homes approved.

A reserved matters application is now being considered, and was recommended refusal by Chard Town Council last month.

The NFB has drawn attention to the failures of large contractors when it comes to fair payments, particularly after Build UK published payment performance figures of its top member companies.

In addition, the figures report that Kier had 48% of invoices “due but not paid within agreed terms”.

Kier has come under increased criticism for its payment performance and the use of an early payment facility, allowing subcontractors to opt for reduced payment sums in exchange for quicker repayment times.

Haydn Mursell, chief executive of Kier, said: “At the moment our average payment terms to our supply chain is 54 days.

"[Our] payment is quicker on average than the client pays us. So we’re already paying our supply chain quicker than our clients pay us – so we’re doing our bit for the industry in that regard.”

An NFB spokesman said: "Kier appears to be asking for a pat on the back for not practicing ‘pay when paid.’

"This is a legal requirement, not something to be claiming credit for."

Neil Walters is the national chair of the National Federation of Builders.

He added: “Build UK said that transparency was a bold first step in changing the way the industry is held back, yet Mursell’s words shows that large contractors are still not taking late payment seriously.

"The Government should be clear that companies who fail to fulfil their pledge under the Prompt Payment Code should be ejected from this scheme.

“Forcing SMEs and regional contractors to choose between quicker payment times and the full amount of money owed for their work is holding the industry back. Nine months after Carillion, fair payment is still a dream for SMEs.”