New procurement bill to mandate prompt payment
About £300 billion in annual public money is spent by the UK government under the direction of the Cabinet Office.
The post-Brexit Procurement Bill, which will influence how the public sector purchases products, provides services, and operates, is presently making its way through Parliament on its road to becoming law.
Rob Driscoll, from the ECA, is the group's chairperson. Although Tiers 1, 2, and 3 under public sector contracts are supposed to be paid in 30 days according to current UK implementation of EU law, this Group has been promoting high level awareness that there has been no reliable way of determining if this actually occurs.
However, Rob Driscoll advised that following a discussion this month with Ministers Baroness Neville-Rolfe and Brendan Clarke-Smith MP, the next Bill now includes provisions to establish 30-day payment inside the public sector.
This will be achieved by ensuring that tier 1, 2 and 3 construction contracts must include an implied 30-day payment clause that supersedes all other payment provisions in the applicable contracts (widely regarded as a landmark achievement); and requiring public sector procurers to report on their payment performance in the same manner as the private sector.
Seeing to it that The Public Procurement Review Service, assisted by the Small Business Commissioner, handle non-compliance if the new measures were adopted as currently envisioned.
If you require support with any of the above mentioned or wish to learn more about this mandate, please feel free to reach out to a member of our team: 01604 696113 or firstname.lastname@example.org.