Public Sector: Procurement

(asked on 1st May 2019) - View Source

Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what enforcement and review mechanisms are in place to ensure 30-day payment clauses are in place for suppliers and subcontractors contracted to work with private sector companies on outsourced public sector contracts.


Answered by
Oliver Dowden Portrait
Oliver Dowden
Chancellor of the Duchy of Lancaster
This question was answered on 8th May 2019

The Public Procurement Regulations require public sector buyers to pay their suppliers
within 30 days and require these payment terms to be passed down the supply chain

Where this is not happening, businesses are encouraged to raise this with the Public
Procurement Review Service, who will investigate. The Public Procurement Review Service
will also proactively ensure that 30-day payment terms are being passed down the supply
chain by carrying out spot checks on contracting authorities

From September, suppliers who do not pay their subcontractors on time may face exclusion
from winning government contracts.

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