Exciting developments in the world of payment

Payapps, an ECA Commercial Associate and industry leader in construction payment management technology, recently announced their acquisition of WebContractor Holdings Limited, a UK-based construction software company specialising in subcontractor applications for payment. 

This move is more significant than it may seem at first glance.

This is an exciting time for our industry: to watch the two main players in digital payment come together to combine and collaborate. Whilst competition breeds innovation, collaboration strengthens the market and prevents the supply chain from being forced to operate with multiple incompatible systems with needless duplication of cost.

What makes this doubly exciting for our sector’s payment landscape is the new Procurement Bill, which was granted Royal Assent this month and has become an Act of Parliament. The new Act will be a huge help to construction sector SMEs, which includes the majority of ECA Members. It will simplify UK procurement and make it more efficient than ever.

Key features of the Act include:

• Changing the criteria from ‘Most Economically Advantageous Tender’ to ‘Most Advantageous Tender’ in order to ensure value, and avoid a ‘race to the bottom’ approach
• Ensuring that 30-day payment terms are an implied term in every public sector contract.
• Ensuring that all public and private sector large organisations must report on their payment performance

Payment is a key issue, and we work with government and those in the industry supply chain to ensure that they understand the often-severe impact of poor payment practices on our members. Furthermore, we have been invited to 10 Downing Street to discuss matters such as these within our Cabinet Office advisory role.

Research from ECA has found that many local authorities are still not ensuring their supply chain was paid on time, in contravention of their legal obligations. The ECA is working to ensure greater public sector compliance.

With Payapps currently processing applications for payment worth over £40 billion per annum globally, this acquisition represents a strategic synergy between two key industry players and affords Payapps the ability to provide even greater value to ECA Members and the wider sector. 

Combined, these recent developments are set to ease more of the pains suffered by construction in the field of payment processing technology. 

ECA’s Legal & Business team provides support and advice relating to key aspects of contractual business matters in both commercial and domestic settings.  From pre-qualification, tendering, contract reviews, to conditions of payment, ECA provides guidance for its Members with templates, guides and a dedicated helpline. Learn more here.