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Late payment in the construction sector

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The report provides an analysis of the state of play and impact of late payment on the European construction sector, by analysing in detail the situation with late payment in five countries: France, Ireland, Italy, Spain and the United Kingdom. The Download Analytical Report looks in detail at causes of late payment in the construction sector, and notably their links with the fragmentation of the construction supply chain and the specifics of payment processes or disputes in the construction sector. To tackle this issue, policy-makers across Europe developed several policies and initiatives, including the adoption of stricter regulations, ensuring transparency of payment practice, better invoice management, dispute resolution systems & sanctions as well as awareness- raising. Finally, the report provides a set of lessons learnt from policymakers on how to tackle the issue in the EU.

 

This Analytical Report is part of the European Construction Sector Observatory (ECSO) project run on behalf of the European Commission. This Analytical Report aims to better understand, through national case studies, some of the main causes of late payment, and how policies and instruments are tackling this issue. The report also provides a set of lessons learnt for policy-makers on how to address the problem across European Union Member States (MS).

 

While unfair long payment terms and late payment affect the entire European economy, the construction sector seems to be suffering the most from late payment issues across the European Union (EU). This Analytical Report, hence, looks at quantitative indicators of late payment in the construction sector of five European countries, i.e. France, Ireland, Italy, Spain and the United Kingdom. Moreover, the report illustrates specific policy responses to the late payment issues across the EU Member States. The approach and methodology of this Analytical Report were tailored to the (limited) statistical data available at the EU level regarding the impacts of late payment in the construction sector. It builds on information and data available at the time of writing obtained from EU and national sources.

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