**Improving Payment Practices in Business-to-Business Transactions: A Call for Legislative Action**

In today’s intricate business landscape, late payments, protracted payment cycles, and contentious disputes surrounding business-to-business transactions pose significant challenges for many organisations. Particularly within the construction sector, these issues can exacerbate financial strain, disrupt project timelines, and ultimately undermine the overall health of the industry. As stakeholders, we must advocate for effective legislative measures that can streamline payment processes, enhance transparency, and foster fairer practices in our commercial dealings.

Late payments are a pressing concern, affecting businesses of all sizes. Small to medium enterprises (SMEs), in particular, often bear the brunt of cash flow issues resulting from delayed payments. When invoices take longer to settle, it can lead to a cascading effect, hindering their ability to invest in growth, pay employees, or meet operational expenses. Moreover, the psychological toll of awaiting payment can lead to significant distress, detracting from overall productivity and innovation.

Legislative measures that impose stricter timelines on payment obligations can create a more equitable business environment. By mandating that businesses adhere to a clear payment schedule, we can reduce uncertainties and foster healthier cash flow management. This is especially crucial in the construction sector, where project funding is contingent on timely payments. Consequently, legislation should aim to protect suppliers and subcontractors from unfair payment practices that disproportionately place financial burden on those less equipped to absorb such delays.

Another critical aspect in this discussion is the use of retention clauses within construction contracts. While retention is often employed as a safeguard against substandard work, it also presents challenges that merit scrutiny. Retention clauses can extend payment timelines, leaving contractors and suppliers waiting for funds long after services have been rendered. This can create detrimental cash flow difficulties, particularly for smaller businesses that rely heavily on timely payments to sustain their operations.

To address these issues, we must consider standardising retention practices across the industry. Legislative measures could establish clear parameters for retention percentages and durations, ensuring that funds are not held indefinitely and are released promptly upon project completion. Such reforms would balance the need for quality assurance with the fair treatment of those executing the work.

Furthermore, open dialogue among industry stakeholders—including contractors, suppliers, and policymakers—will be essential in shaping effective solutions. Engaging in consultations, forums, and hearings can provide valuable insights into the on-the-ground realities faced by those in the field. This collaborative approach can better inform legislative initiatives aimed at ensuring prompt payments and fair retention practices.

In conclusion, addressing late, long, and disputed payments in business-to-business transactions and re-evaluating the use of retention clauses in construction contracts is vital for fostering a more balanced economic environment. By pursuing legislative reforms that focus on timely payments and equitable contract terms, we can boost confidence within the sector and support the growth of all businesses involved. It is time for stakeholders to voice their concerns and contribute to a framework that ensures fair treatment and stability for everyone. We invite all industry participants to lend their views and participate in the conversation, ultimately paving the way for substantial improvements in our business landscape.

July 30, 2025 at 04:22PM
迟付款项：应对不良付款习惯

我们正在征求意见，针对解决商业间迟延、长时间和争议付款的立法措施，以及在建筑合同中使用保留条款的相关问题。

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