Cemex UK to change payment terms for haulage contractors
Created 12/01/2010, 11:05:49 am
Matthew Wild, vice-president for commercial cement, logistics and building products at Cemex UK, says the company has been working with its aggregates and asphalt haulage contractors since June to plan an increase in the length of payment terms.
"The increase has been introduced in stages, and we have been in discussions on a one-to-one basis to assist our contractors where needed," she explains.
From January 2011 Cemex will introduce a fuel mechanism, which will see haulage rates adjusted in line with changes in the price of fuel.
"As fuel represents approximately 30% of all costs, we recognise the impact this has, and are implementing this mechanism to reduce the risk and uncertainty of this variable to our hauliers," she adds.
One subcontractor said the delay will leave him waiting on a six figure sum as his payment terms would be changed from 30 days to 45 days.
"Work for Cemex makes up 50% of our business," he says. "We will be fine on finance for our vehicles but, basically, we will have to increase our overdraft limit with the bank and that won't be cheap."
Cemex's move follows the news that rival Aggreggate Industries was refusing to pay subcontractors on time.
Source: roadtransport.com
