Berkeley Group is moving to a new finance system which could leave its supply chain facing six weeks without payments this summer.
Subcontractors have been sent emails from the house building giant warning about disruption to payments.
It said: “As some of you will be aware, Berkeley Group have started to introduce a new Finance, Procurement and Subcontract application throughout its businesses.
“There will be some disruption caused by this and we are anticipating not being able to raise or make any payments from mid-June to the end of July 2024.
“We are reviewing all accounts on a case by case basis and your Berkeley contact will talk to you about the downtime and what this means for your payments.
“Payments will resume in August and we will endeavour to clear any backlog as quickly as possible. We would greatly appreciate your co-operation during the initial months.”
One supplier said: “I knew nothing at all about this until I saw the email telling me I won’t be getting paid for six weeks. Thank goodness we only have one job with them!”
Berkeley has been approached for a comment.
