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NHS: Procurement

Health written question – answered on 19th October 2012.

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Photo of Chris Ruane Chris Ruane Opposition Whip (Commons)

To ask the Secretary of State for Health what steps his Department is taking to monitor the payment (a) of its main contractors within 14 days and (b) by main contractors to sub-contractors within 30 days.

Photo of Daniel Poulter Daniel Poulter The Parliamentary Under-Secretary of State for Health

The Department does not specifically monitor the proportion of payments made within 14 days as this is not a target that has been set. The Department of Health operates standard contractual payment terms of 30 days.

However, the Department has also signed up to the Government's Prompt Payment policy under which the target is to pay all valid supplier invoices that are received at the nominated address within five days of receipt. Performance against this target is expected to be published on the Department's website within six days of the previous month. Performance against this target has not fallen below 90% since January 2011.

The Department's standard terms and conditions of contract include provision that sub-contractors must be paid by the Department's contractors within 30 days. The Department would investigate complaints by a sub-contractor to ensure our contractors continue to meet their contractual responsibilities.

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