Scotland Office: Billing

Scotland Office written question – answered on 15th 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 Scotland, 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 David Mundell David Mundell The Secretary of State for Scotland

Through the Public Contract Regulations 2015, all public sector buyers must include 30-day payment terms in new public sector contracts, and require that this payment term be passed down the supply chain. Public sector buyers must also publish annually on their payment performance.

Government strongly encourages businesses to report poor payment practice and instances of late payment, including late payment through the supply chain, in public sector contracts to its Mystery Shopper service. Mystery Shopper will then investigate.

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