Maintaining cash flow in construction contracts

Good cash flow is essential for businesses in the construction industry as issues with it can often spell the end of a project and even an entire business, as seen with Carillion in 2018.

If procedures are not in place to ensure a healthy cash flow, debt recovery after the event can become obsolete.  

Funds need to be readily available to contractors and employers in order to ensure that the goods, services and labour required to complete a project on time and within budget are available. 

There are however rules concerning payment that are vital to the industry and, if not followed, can have a significant impact on employers and contractors alike. 

What are the rules concerning payment timescales?