Public Sector: Procurement

Cabinet Office written question – answered on 17th July 2012.

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Photo of Gordon Banks Gordon Banks Labour, Ochil and South Perthshire

To ask the Minister for the Cabinet Office

(1) what mechanisms exist to prevent contractors for public sector projects from revising their initially proposed payment figures to subcontractors upon completion of a project;

(2) what steps he is taking to prevent incomplete payments from being made by construction industry contractors working on public sector projects.

Photo of Francis Maude Francis Maude The Paymaster General and Minister for the Cabinet Office

The Government are increasingly making use of Project Bank Accounts, which ensure that subcontractors down to at least tier 3 of supply chains are paid directly and promptly.

Where Project Bank Accounts are not used, the requirement for contractors to pay their subcontractors within 30 days—in line with the Government's Prompt Payment Code—is specified in contract terms.

We are also encouraging subcontractors to use the “Mystery Shopper” service to report instances to us where this is not happening. We regularly publish details of investigated cases on the Cabinet Office website.

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