The Public Contract Regulations require public sector buyers to pay their suppliers within 30 days and require these payment terms to be passed down the supply chain. Should circumstances of non-compliance arise, we encourage sub-contractors to contact the Public Procurement Review Service in the Cabinet Office who will investigate. The service has helped suppliers reclaim over £5 million in late payments.
A new prompt payment initiative to ensure all Government suppliers and subcontractors benefit from being paid on time, will come into force in Autumn 2019. Companies who fail to demonstrate prompt payment to their suppliers face being prevented from winning government contracts. This move will promote a healthy and diverse marketplace of companies providing public services.