Nov 24, 2020

CIMIC Group shifts on payment terms

CIMIC Group shifts on payment terms

Major contractor CIMIC Group is returning to 30-day payment terms for its small business suppliers and subcontractors in Australia.

The group – whose operating companies include CPB Contractors, UGL, Thiess and Sedgman – said the policy would be implemented progressively in the coming months.  

The group came under fire late last year when UGL’s payment terms were pushed out to 65 days after the month in which suppliers and subcontractors issued their invoices.

Australian Small Business and Family Enterprise Ombudsman Kate Carnell was among those expressing concern and supply chain financing provider Greensill informed all Australian clients that they must not push out payment terms to SME suppliers beyond 30 days.

CIMIC said today that small business played an important role in the Australian economy and it recognised the importance of prompt payment to all businesses. 

“CIMIC Group will publish a Small Business Payment Policy for its operating companies, including UGL and CPB Contractors, in coming weeks under which small business suppliers and subcontractors in Australia will be eligible for 30-day payment terms,” it said. 

“The Department of Industry, Science, Energy and Resources will set up a register of ‘small businesses’.

“Our Policy will use the register as a basis to identify small businesses. The 30-day payment terms will apply as soon as is practical after the register becomes available and the policy is published.”