The new regulations on payment bottlenecks will not be much help to the construction industry

The amendments to the regulations on limiting payment bottlenecks that take effect at the start of next year won’t bring with them any significant improvement in liquidity for infrastructure construction companies. To help them collect payments for their services, we should look at streamlining the documentation process for construction work and changing the regulations on mutual services. One of the key changes to the recently adopted ‘Act amending certain legislation for the purpose of limiting payment bottlenecks’ is that there will be a shortening of payment times. In construction contracts where the payer is a public entity, payments have to be made within 30 days of the invoice issuance date. When the payer is a large enterprise and the payee is a micro-enterprise – a small or medium-sized company – the deadline cannot exceed 60 days. While the cutting of the payment times is a positive change, it won’t bring a significant improvement to compa