Prompt payment code - Revision history

Editor at 12:08, 14 October 2024

2024-10-14T12:08:43Z

← Older revision		Revision as of 12:08, 14 October 2024
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	“Having hosted and administered the Prompt Payment Code for BIS since its launch, we have seen the Code grow in stature, prominence and membership. The timing is now right for the Code to be further strengthened and developed as a key tool in helping to tackle the scourge of late payment and driving a change in business culture from top to bottom.”		“Having hosted and administered the Prompt Payment Code for BIS since its launch, we have seen the Code grow in stature, prominence and membership. The timing is now right for the Code to be further strengthened and developed as a key tool in helping to tackle the scourge of late payment and driving a change in business culture from top to bottom.”

−	= ~~Back ground to late payments in the Construction industry~~ =	+	= Background and key events =

	Late payment of invoices is a problem for most suppliers of goods and services. In the construction industry, a survey of 250 small construction companies in November 2012 found that 97% felt unfairly treated by main contractors, and just 5% of all work was paid for within 30 days. Other attempts to tackle this problem have included; the Housing Grants, Construction and Regeneration Act, the Construction Supply Chain Payment Charter, and the introduction of project bank accounts. It remains to be seen whether the involvement of Skanska in the Prompt Payment Advisory Board will make a difference to the industry.		Late payment of invoices is a problem for most suppliers of goods and services. In the construction industry, a survey of 250 small construction companies in November 2012 found that 97% felt unfairly treated by main contractors, and just 5% of all work was paid for within 30 days. Other attempts to tackle this problem have included; the Housing Grants, Construction and Regeneration Act, the Construction Supply Chain Payment Charter, and the introduction of project bank accounts. It remains to be seen whether the involvement of Skanska in the Prompt Payment Advisory Board will make a difference to the industry.

Editor at 12:07, 14 October 2024

2024-10-14T12:07:45Z

← Older revision		Revision as of 12:07, 14 October 2024
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	During this time ECA, CIAT and others published support routes for employees, clients and contractors in relation to the collapose of the construction industry giant. The CLC also announced its endorsement of the Build UK Document to Support Organisations in the ISG Supply Chain. Its said "Following the collapse of ISG last month, Build UK, with the support of Wedlake Bell LLP, has published a series of Frequently Asked Questions (FAQs) to support organisations in the supply chain that may be affected. See article ISG administration, October support update.		During this time ECA, CIAT and others published support routes for employees, clients and contractors in relation to the collapose of the construction industry giant. The CLC also announced its endorsement of the Build UK Document to Support Organisations in the ISG Supply Chain. Its said "Following the collapse of ISG last month, Build UK, with the support of Wedlake Bell LLP, has published a series of Frequently Asked Questions (FAQs) to support organisations in the supply chain that may be affected. See article ISG administration, October support update.
		+
		+	Significantly in Novermebr if the prior year an ISG spokesperson said: “Some six to eight weeks ago, we were alerted to unsubstantiated, wholly inaccurate and false claims that were circulating about our business. As you would expect, we actively reached out to our stakeholders with facts and truth.” 10 months later the firm went from dismissing sepculation to the brink of administration, as [https://www.bdonline.co.uk/news/timeline-how-isg-went-from-wholly-inaccurate-claims-about-its-financial-health-to-isg-has-filed-for-administration/5131725.article reported by Buildnig Design] in 'Timeline: How ISG went from ‘wholly inaccurate’ claims about its financial health to ‘ISG has filed for administration’

	=== Carillion ===		=== Carillion ===

Editor at 11:58, 14 October 2024

2024-10-14T11:58:12Z

← Older revision		Revision as of 11:58, 14 October 2024
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	* Construction client's charter.		* Construction client's charter.
	* Construction supply chain payment charter.		* Construction supply chain payment charter.
		+	* Fair Payment Code
	* Fair payment practices.		* Fair payment practices.
	* Housing Grants, Construction and Regeneration Act.		* Housing Grants, Construction and Regeneration Act.
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	* Scheme for construction contracts.		* Scheme for construction contracts.
	* The Late Payment of Commercial Debts Regulations 2013.		* The Late Payment of Commercial Debts Regulations 2013.
		+	* The Reporting on Payment Practices and Performance (Amendment) (No. 2) Regulations 2024.

	= External references =		= External references =
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	* 2013 BIS discussion paper: [https://www.gov.uk/government/consultations/late-payment-of-finance-building-a-responsible-payment-culture Building a Responsible Payment Culture].		* 2013 BIS discussion paper: [https://www.gov.uk/government/consultations/late-payment-of-finance-building-a-responsible-payment-culture Building a Responsible Payment Culture].

−	~~[[Category:Articles_needing_more_work]]~~ [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:DCN_Standard]] [[Category:Policy]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:DCN_Standard]] [[Category:Policy]] [[Category:Contracts_/_payment]]

Editor at 11:29, 14 October 2024

2024-10-14T11:29:26Z

← Older revision		Revision as of 11:29, 14 October 2024
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−	= Introduction =	+	= Introduction to the Prompt Payment Code (PPC) =

	The Prompt Payment Code (PPC) was created by the UK government in 2008 in response to a call from businesses for a change in payment culture. It established a set of principles for businesses when dealing with and paying their suppliers that commit them to paying on time and fairly. The Code is administered by the Institute of Credit Management (ICM) on behalf of the Department for Business Innovation & Skills (BIS).		The Prompt Payment Code (PPC) was created by the UK government in 2008 in response to a call from businesses for a change in payment culture. It established a set of principles for businesses when dealing with and paying their suppliers that commit them to paying on time and fairly. The Code is administered by the Institute of Credit Management (ICM) on behalf of the Department for Business Innovation & Skills (BIS).
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	More than 1,700 businesses and public authorities have committed to the Code. Approved organisations can use the PPC logo on their documentation and website.		More than 1,700 businesses and public authorities have committed to the Code. Approved organisations can use the PPC logo on their documentation and website.

−	= ~~Replacement code update~~ 2024 =	+	= Replacing PPC with the new Fair Payment Code in 2024 =

−	= Advisory Board =	+	In [https://www.gov.uk/government/news/crack-down-on-late-payments-in-major-support-package-for-small-businesses September 2024 the UK government announced] it was to crack down on late payments with a package of newmeasures aimed at tackling scourge of late payments in support of small businesses. One element of this included replacement of the Prompt Payment Code, with a new Fair Payment Code, refreshing the rules on company reporting, launched in Autumn 2024, and a major consultation on tackling late payments.
		+
		+	The new Fair Payment Code is open to signatories from autumn 2024 and being launched by the Small Business Commissioner, with the support of the Department of Business and Trade. It seeks to "to address issues raised by stakeholders with the Prompt Payment Code and aims to be more ambitious, aspirational and robust".
		+
		+	The new Fair Payment Code will include a set of fair payment principles that companies are required to sign up to, as well as three award categories whihc will be as follows:
		+
		+	* Gold – For companies paying 95% of their suppliers within 30 days
		+	* Silver – For companies paying 95% of their small business suppliers within 30 days and all other suppliers within 60 days.
		+	* Bronze – For companies paying 95% of suppliers within 60 days.
		+
		+	= Advisory Board of the original PPC =

	Responses to a 2013 BIS discussion paper, [https://www.gov.uk/government/consultations/late-payment-of-finance-building-a-responsible-payment-culture Building a Responsible Payment Culture] suggested a need to make the Code ‘more robust and active’, and so in in October 2014, BIS announced that a new Prompt Payment Advisory Board would be created tasked with strengthening the Code:		Responses to a 2013 BIS discussion paper, [https://www.gov.uk/government/consultations/late-payment-of-finance-building-a-responsible-payment-culture Building a Responsible Payment Culture] suggested a need to make the Code ‘more robust and active’, and so in in October 2014, BIS announced that a new Prompt Payment Advisory Board would be created tasked with strengthening the Code:
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	“Having hosted and administered the Prompt Payment Code for BIS since its launch, we have seen the Code grow in stature, prominence and membership. The timing is now right for the Code to be further strengthened and developed as a key tool in helping to tackle the scourge of late payment and driving a change in business culture from top to bottom.”		“Having hosted and administered the Prompt Payment Code for BIS since its launch, we have seen the Code grow in stature, prominence and membership. The timing is now right for the Code to be further strengthened and developed as a key tool in helping to tackle the scourge of late payment and driving a change in business culture from top to bottom.”

−	= Construction industry =	+	= Back ground to late payments in the Construction industry =
		+
		+	Late payment of invoices is a problem for most suppliers of goods and services. In the construction industry, a survey of 250 small construction companies in November 2012 found that 97% felt unfairly treated by main contractors, and just 5% of all work was paid for within 30 days. Other attempts to tackle this problem have included; the Housing Grants, Construction and Regeneration Act, the Construction Supply Chain Payment Charter, and the introduction of project bank accounts. It remains to be seen whether the involvement of Skanska in the Prompt Payment Advisory Board will make a difference to the industry.

−	Late payment of invoices is a problem for most suppliers of goods and services. In the construction industry, a survey of 250 small construction companies in November 2012 found that 97% felt unfairly treated by main contractors, and just 5% of all work was paid for within 30 days.	+	=== ISG ===

−	~~Other attempts to tackle this problem have included; the Housing Grants~~, Construction ~~and Regeneration Act~~, the Construction ~~Supply Chain Payment Charter~~, and ~~the introduction~~ of ~~project bank accounts~~.	+	In mid 2024 ISG was first report as being in significant trouble trading. By 8 October, 2024 the Construction Enquirer reported that 'In letters to trade creditors, administrator EY confirmed that no further work would be carried out during the administration on existing contracts, including projects for Construction, Fit Out and Engineering services businesses. It said: “The companies are being wound down under our supervision while we conduct an investigation of their financial affairs....At present, it is not anticipated that there will be any funds available for a distribution to creditors.”

−	~~It remains~~ to ~~be seen whether~~ the ~~involvement~~ of ~~Skanska~~ in the ~~Prompt Payment Advisory Board will make~~ a ~~difference~~ to the ~~industry~~.	+	During this time ECA, CIAT and others published support routes for employees, clients and contractors in relation to the collapose of the construction industry giant. The CLC also announced its endorsement of the Build UK Document to Support Organisations in the ISG Supply Chain. Its said "Following the collapse of ISG last month, Build UK, with the support of Wedlake Bell LLP, has published a series of Frequently Asked Questions (FAQs) to support organisations in the supply chain that may be affected. See article ISG administration, October support update.

	=== Carillion ===		=== Carillion ===
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	The Federation of Small Business described the code as 'toothless' and called for the government to; '...step in immediately to strengthen the PPC by making it mandatory for all FTSE 350 businesses and introducing a tough penalty regime for those companies flaunting the rules.'		The Federation of Small Business described the code as 'toothless' and called for the government to; '...step in immediately to strengthen the PPC by making it mandatory for all FTSE 350 businesses and introducing a tough penalty regime for those companies flaunting the rules.'

−	= ~~Updates~~ =	+	= Background =

	In November 2018, the government announced a new prompt payment initiative to ensure all suppliers and subcontractors on public projects/services are paid on time. If companies fail to demonstrate prompt payment to suppliers, they could be prevented from being awarded government contracts.		In November 2018, the government announced a new prompt payment initiative to ensure all suppliers and subcontractors on public projects/services are paid on time. If companies fail to demonstrate prompt payment to suppliers, they could be prevented from being awarded government contracts.

Editor at 08:38, 14 October 2024

2024-10-14T08:38:25Z

← Older revision		Revision as of 08:38, 14 October 2024
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	More than 1,700 businesses and public authorities have committed to the Code. Approved organisations can use the PPC logo on their documentation and website.		More than 1,700 businesses and public authorities have committed to the Code. Approved organisations can use the PPC logo on their documentation and website.
		+
		+	= Replacement code update 2024 =

	= Advisory Board =		= Advisory Board =
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	* 2013 BIS discussion paper: [https://www.gov.uk/government/consultations/late-payment-of-finance-building-a-responsible-payment-culture Building a Responsible Payment Culture].		* 2013 BIS discussion paper: [https://www.gov.uk/government/consultations/late-payment-of-finance-building-a-responsible-payment-culture Building a Responsible Payment Culture].

−	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:DCN_Standard]] [[Category:Policy]] [[Category:Contracts_/_payment]]	+	[[Category:Articles_needing_more_work]] [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:DCN_Standard]] [[Category:Policy]] [[Category:Contracts_/_payment]]

Designing Buildings at 12:14, 27 February 2023

2023-02-27T12:14:13Z

← Older revision		Revision as of 12:14, 27 February 2023
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	* Stort Chemicals Ltd.		* Stort Chemicals Ltd.

−	The Board was tasked with implementing proposals in Spring 2015 (ref. [https://www.gov.uk/government/news/government-and-industry-join-together-to-tackle-late-payment Government and industry join together to tackle late payment] 28 October 2014). On 25 March 2015, a timeline was published to implement changes to the code and a new prompt ~~[http://www.promptpaymentcode.org.uk/~~ payment code website] went live.	+	The Board was tasked with implementing proposals in Spring 2015 (ref. [https://www.gov.uk/government/news/government-and-industry-join-together-to-tackle-late-payment Government and industry join together to tackle late payment] 28 October 2014). On 25 March 2015, a timeline was published to implement changes to the code and a new prompt payment code website went live.

	Philip King, CEO of the Institute of Credit Management and co-chair of the Prompt Payment Code Advisory Board said:		Philip King, CEO of the Institute of Credit Management and co-chair of the Prompt Payment Code Advisory Board said:

Designing Buildings at 10:43, 28 December 2021

2021-12-28T10:43:58Z

← Older revision		Revision as of 10:43, 28 December 2021
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	= Introduction =		= Introduction =

−	The ~~[http://www.promptpaymentcode.org.uk/~~ Prompt Payment Code] (PPC) was created by the UK government in 2008 in response to a call from businesses for a change in payment culture. It established a set of principles for businesses when dealing with and paying their suppliers that commit them to paying on time and fairly. The Code is administered by the ~~[http://www.icm.org.uk/~~ Institute of Credit Management] (ICM) on behalf of the Department for Business Innovation & Skills (BIS).	+	The Prompt Payment Code (PPC) was created by the UK government in 2008 in response to a call from businesses for a change in payment culture. It established a set of principles for businesses when dealing with and paying their suppliers that commit them to paying on time and fairly. The Code is administered by the Institute of Credit Management (ICM) on behalf of the Department for Business Innovation & Skills (BIS).

	Code signatories undertake to:		Code signatories undertake to:
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	* The Late Payment of Commercial Debts Regulations 2013.		* The Late Payment of Commercial Debts Regulations 2013.

−	= External references. =	+	= External references =

−	* [http://www.promptpaymentcode.org.uk/ Prompt Payment Code].
	* [https://www.gov.uk/government/news/government-and-industry-join-together-to-tackle-late-payment Government and industry join together to tackle late payment] 28 October 2014.		* [https://www.gov.uk/government/news/government-and-industry-join-together-to-tackle-late-payment Government and industry join together to tackle late payment] 28 October 2014.
	* 2013 BIS discussion paper: [https://www.gov.uk/government/consultations/late-payment-of-finance-building-a-responsible-payment-culture Building a Responsible Payment Culture].		* 2013 BIS discussion paper: [https://www.gov.uk/government/consultations/late-payment-of-finance-building-a-responsible-payment-culture Building a Responsible Payment Culture].

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:DCN_Standard]] [[Category:Policy]] [[Category:Contracts_/_payment]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:DCN_Standard]] [[Category:Policy]] [[Category:Contracts_/_payment]]

Editor at 12:13, 9 December 2021

2021-12-09T12:13:33Z

← Older revision		Revision as of 12:13, 9 December 2021
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	On 19 January 2021, the government announced reforms to the Prompt Payment Code to encourage companies to stand by smaller suppliers. Companies that have signed up to the Prompt Payment Code will be obliged to pay small businesses within 30 days - half the time outlined in the current Code. Finance Directors or CEOs will be required to take personal responsibility by signing the Code, acknowledging that suppliers can charge interest on late invoices under the Code and that breaches will be investigated. Ref [https://www.gov.uk/government/news/government-tackles-late-payments-to-small-firms-to-protect-jobs https://www.gov.uk/government/news/government-tackles-late-payments-to-small-firms-to-protect-jobs]		On 19 January 2021, the government announced reforms to the Prompt Payment Code to encourage companies to stand by smaller suppliers. Companies that have signed up to the Prompt Payment Code will be obliged to pay small businesses within 30 days - half the time outlined in the current Code. Finance Directors or CEOs will be required to take personal responsibility by signing the Code, acknowledging that suppliers can charge interest on late invoices under the Code and that breaches will be investigated. Ref [https://www.gov.uk/government/news/government-tackles-late-payments-to-small-firms-to-protect-jobs https://www.gov.uk/government/news/government-tackles-late-payments-to-small-firms-to-protect-jobs]

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Cash flow.		* Cash flow.
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	* Net zero commitment will be required for major government contracts.		* Net zero commitment will be required for major government contracts.
	* Procurement policy note PPN.		* Procurement policy note PPN.
		+	* Prompt Payment Code boosted to help SMEs.
	* Prompt payment code: the story behind the headlines.		* Prompt payment code: the story behind the headlines.
	* Progress on poor payment practices.		* Progress on poor payment practices.

Editor at 15:36, 12 October 2021

2021-10-12T15:36:37Z

← Older revision		Revision as of 15:36, 12 October 2021
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	* Insolvency.		* Insolvency.
	* Net zero commitment will be required for major government contracts.		* Net zero commitment will be required for major government contracts.
		+	* Procurement policy note PPN.
	* Prompt payment code: the story behind the headlines.		* Prompt payment code: the story behind the headlines.
	* Progress on poor payment practices.		* Progress on poor payment practices.

Editor at 15:33, 8 June 2021

2021-06-08T15:33:00Z

← Older revision		Revision as of 15:33, 8 June 2021
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	* Housing Grants, Construction and Regeneration Act.		* Housing Grants, Construction and Regeneration Act.
	* Insolvency.		* Insolvency.
		+	* Net zero commitment will be required for major government contracts.
	* Prompt payment code: the story behind the headlines.		* Prompt payment code: the story behind the headlines.
	* Progress on poor payment practices.		* Progress on poor payment practices.