Quantity surveyors across the UK are well aware of how damaging late payments can be. Delayed invoices don’t just strain cashflow, they cause project delays, put subcontractors at risk, and create ripple effects throughout the supply chain. Now, the UK Government is taking serious action to change that.
Under a bold new Plan for Change, the government has announced the most significant late payment reforms in 25 years, and construction professionals should be paying close attention.
Why Late Payments Are a Construction Killer
In an industry where contracts span months and supply chains involve dozens of parties, getting paid on time isn’t just a convenience, it’s a necessity. Quantity surveyors are often stuck managing the fallout from late payments: chasing overdue invoices, adjusting cost forecasts, and trying to keep everyone from site operatives to suppliers afloat.
According to the government, late payments cost the UK economy £11 billion per year and are responsible for shutting down 38 businesses every single day. And in construction where SMEs and subcontractors make up the backbone of project delivery, the impact is especially severe.
What’s Changing, and When?
The UK is rolling out a new set of laws to crack down on late payments, giving small businesses, including those in construction, new protections — and giving QSs more certainty and leverage.
Here’s what’s coming:
New Legal Powers
The Small Business Commissioner will be given the power to:
- Conduct spot checks on payment practices,
- Enforce a 30-day invoice verification window,
- Issue multi-million-pound fines to repeat offenders.
Maximum Payment Terms
New rules will enforce a maximum 60-day payment window, with plans to tighten this to 45 days over time. This will help QSs build clearer terms into JCT or NEC contracts.
Mandatory Interest on Late Payments
Companies who fail to pay on time will automatically owe interest and financial penalties, giving suppliers and QSs added protection when payments drag.
Board-Level Accountability
Large firms will need their audit committees to review supplier payment practices, making delayed payments a corporate governance issue, not just a back-office annoyance.
When Will This Happen?
The rollout is phased, but the timeline is already in motion:
Date What Happens
Now – Oct 2025 Government consultation is open. Construction professionals are encouraged to respond.
1 Jan 2026 Payment reporting rules begin for large firms with new financial years.
19 Jan 2026 New laws come into force, including payment terms, fines, and audit committee responsibilities.
This means most of the new payment protections, including penalties for late payments and stricter payment terms, will be legally enforceable by early 2026.
Keir Starmer called late payments “unfair, exhausting, and holding Britain back.” For construction professionals, it’s all of those things and more.
These reforms could level the playing field for SMEs. It could give quantity surveyors a stronger framework for protecting project cashflow and keeping construction programmes on track.
Whether you’re a PQS advising clients or a contractor-side QS managing supply chain payments, these changes are worth watching closely. And if you’ve ever had to chase a payment you certified weeks ago. This might just be the relief you’ve been waiting for.
