Published on: 22 February 2022
The Crown Commercial Service CEO Simon Tse has sent messages to all framework suppliers today about the measures the Government is taking to promote prompt payment across the UK. Suppliers on a CCS commercial agreement/framework are being strongly encouraged to not only report on their payment performance but also make improvements. The Public Contracts Regulations (2015) already require 30 day payment terms to be passed down the supply chain on those contracts that relate to public sector work. However from 1 April 2022, suppliers bidding for central government contracts worth more than £5m per annum, will need to demonstrate that they pay at least 90% of their invoices to suppliers within 60 days in one of their previous two published payment reports, or risk being excluded from the procurement. This is an increase from the existing ‘pass’ mark of 85% in 60 days and applies to all of a company’s external invoices, irrespective of whether they relate to government work.
Additionally if suppliers have not yet signed up to the Prompt Payment Code (a voluntary code of practice for businesses) they are encouraged to contact the Office of the Small Business Commissioner to take this forward.
TISCreport already tracks the number of CCS suppliers who are in scope for PPPR and their compliance status. You can see your own supplier prompt payment code signatories and Payment Practices report data on your tiscreport dashboard by subscribing to our data subscriptions for:
- Payment Practices Reporting Regulations 2017 Compliance
- Prompt Payment Code Signatories and Suspensions
Our youtube training videos will help you to set up your supplier dashboard, customise reporting and subscribe to data sets that help you with your non-financial due diligence obligations..
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