Asked by: James Frith (Labour - Bury North)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, what monitoring processes the Government uses to check that main contractors pay sub-contractors within 30 days.
Answered by Oliver Dowden
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.
Asked by: James Frith (Labour - Bury North)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, when he plans to publish the results of his May 2018 consultation on whether Government suppliers with a poor payment record should be excluded from Government procurement contracts in future.
Answered by Oliver Dowden
On November 29, I announced a new prompt payment initiative to ensure all Government suppliers and subcontractors benefit from being paid on time. For the first time, failure of companies to demonstrate prompt payment to their suppliers could result in them being prevented from winning government contracts.
Coming into force on 1 September 2019, this will ensure the government only does business with companies who pay their suppliers on time, many of which are small businesses. The move will promote a healthy and diverse marketplace of companies providing public services.
Asked by: James Frith (Labour - Bury North)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, how many Government departments use Project Bank Accounts when issuing contracts; and how use of those accounts is monitored.
Answered by Oliver Dowden
Government contracts make provision for the use of Project Bank Accounts (PBAs) and departments have committed to use PBAs on their construction projects unless there are compelling reasons not to. The greatest use of PBAs is in DfT within Highways England and through Defra in the Environment Agency.
It is for individual departments to monitor the PBA as appropriate to their contracts
Asked by: James Frith (Labour - Bury North)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, whether he is taking steps to ensure that existing Carillion project sub-contractors are given priority consideration when tenders are being reissued.
Answered by Oliver Dowden
It is illegal to favour specific suppliers in public tendering exercises. Subcontractors are appointed by prime contractors, and Government has no involvement with the allocation of sub-contractors for public contracts.
The Official Receiver is the official contact for subcontractors who worked on Carillion projects.