- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 26 Dec 2020
The payment period is the period of time from the point a debt is incurred to the due date of the repayment. The average payment period is the average time a company takes to make payments to its creditors.
With credit card payments, the payment period is usually around a month from when the item was purchased. If payment is not received by the due date, interest charges will apply. With mortgage payments, the payment period is also usually a month, although with some it can be biweekly.
Typically, in business, when invoices for work undertaken are submitted to the buyer of goods or services, the payment period is 30 days, however it is not uncommon for companies to have an unstated policy of flouting the payment period by as much as two to three months. This is usually for no other reason than it is the culture of the company to behave in that way, but can also be a sign of cash-flow problems.
In the construction industry, payment can be the source of a great deal of acrimony. Not only are the sums involved very large, and the duration of projects very long, but the total amount payable tends to change over time. In addition, contractors, subcontractors and suppliers face considerable risk when pricing construction projects, and optimistic pricing or late payments (ie the payment due does not arrive within the payment period) can quickly cause cash-flow problems.
Payment period should not be confused with 'pay period' which is the length of time – usually recurring – over which employees are paid. Pay periods depend on the employer and the nature of the work but can be weekly, bi-weekly, semi-monthly, monthly etc. Professional salaried employees are typically paid per calendar month, while manual workers may be paid weekly or even by the day.
 Related articles on Designing Buildings Wiki
- Causes of construction disputes.
- Construction invoice fraud.
- Construction supply chain payment charter.
- Fair payment practices.
- Housing Grants, Construction and Regeneration Act.
- The Late Payment of Commercial Debts Regulations 2013.
- Payment notice.
- Payments to nominated sub-contractors.
- Pay less notice.
- Payment schedule.
- Project bank accounts.
- Prompt payment code.
- Scheme for construction contracts.
- The causes of late payment in construction.
Featured articles and news
High levels of mica and pyrite found in aggregate used for Irish homes.
Organisation offers mobile app to its members.
BSRIA explores US share of 2020 VRF market.
New fire safety requirement comes into force.
Different types of bridges are meant to move.
A logical approach to handling the internal voice of self doubt.
First fashionable in the US, decorative metal has become globally desirable.
Helping communities preserve and enhance historic environments.
Creating comfortable climates despite extreme temperatures.
Study examines how adjustable arrangements can succeed.
Government announces plans to improve accessibility.
Resource addresses pandemic-related NEC4 contract issues.