Department for Environment, Food and Rural Affairs: Billing

Department for Environment, Food and Rural Affairs written question – answered on 19th November 2018.

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Photo of Jon Trickett Jon Trickett Shadow Minister (Cabinet Office), Shadow Lord President of the Council

To ask the Secretary of State for Environment, Food and Rural Affairs, what proportion of contracts issued by his Department and contractors include provisions to impose, as between parties to the subcontract, that any payment due from the contractor to a subcontractor under the contract is to be made no later than the end of a period of 30 days from the date on which the relevant invoice is regarded as valid and undisputed, as required by the Public Contract Regulations 2015.

Photo of George Eustice George Eustice The Minister of State, Department for Environment, Food and Rural Affairs

All contracts issued by Defra contain, within the standard terms and conditions, the following clauses:

  • The authority shall pay all sums due to the contractor within 30 days of receipt of a valid invoice.

  • If a payment of an undisputed amount is not made by the authority by the due date, then the authority shall pay the contractor interest at the interest rate specified in the Late Payment of Commercial Debts (Interest) Act 1998.

  • The contractor shall ensure that a provision is included in all subcontracts which requires payment to be made of all sums due to subcontractors within 30 days of the receipt of a valid invoice.

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