PPN 021: Payment Spot Checks in Public Sub-Contracts
PPN 021: Payment Spot Checks in Public Sub-Contracts. This PPN sets out how contracting authorities can spot check their public contract supply chains to ensure suppliers meet the payment terms in the Procurement Act 2023.
After consultation with ECA’s leadership role on payment and in response to ECA’s call for more robust monitoring and enforcement of payment requirements, Cabinet Office has published PPN 021.
This PPN encourages contracting authorities to ‘spot check’ their suppliers to ensure that 30-day payment terms are being implemented throughout the supply chain on public sector contracts with a value over £5 million per annum. A term was made a requirement under the Procurement Act 2023 (implemented on 24 February 2025) after work by ECA to introduce mandatory 30-day payment in public sector contracts at tiers 1 and 2 of the supply chain.
From 1 October 2025, public sector authorities should include terms within their contracts to enable them to undertake payment spot checks and request the following information from suppliers at least once every six months:
- A copy of the payment terms for the contract.
- Details of procedures for resolving disputed invoices promptly and effectively and evidence that these have been shared with the supply chain.
- Evidence of payments made (and time taken to pay) in relation to the contract.
Most of this information will be easily extracted form digital payment management systems.
If it is discovered that a supplier is not complying with the requirement to pay within 30 days, a public sector contracting authority may take a number of actions.
This PPN sets out how contracting authorities can spot check their public contract supply chains to ensure suppliers meet the payment terms in the Procurement Act 2023.
This article appears on the ECA news and blogsite as 'ECA Influence: Monitoring Payment Performance' dated 1 May, 2025.
--ECA
[edit] Related articles on Designing Buildings
- Best value procurement.
- Cabinet office payment rules within the procurement act welcomed.
- Common minimum standards.
- Dynamic purchasing system under the Single Procurement Document (Scotland).
- Fair payment practices.
- Independent review of construction frameworks.
- Infrastructure and Projects Authority.
- Integrated Supply Team.
- Management Consultancy Framework MCF.
- Managing the procurement process.
- Major Projects Authority.
- Output-based specification.
- Procurement Act 2023.
- Procurement Policy Note 12/15.
- Procurement policy note PPN.
- Procurement route.
- Public procurement.
- SMEs and government contracts.
- Sourcing playbook.
- Transforming Public Procurement Green Paper.
- Cabinet office payment rules within the procurement act welcomed.
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
New Prime Minister delivers on ECA call for cut in electricity costs.
CIOB reacts to the announcement of Andy Burnham as Prime Minister.
Heritage and conservation science workforce survey - Have your say.
England's Suburbs 1820-2020. Book review.
New, more proportionate and targeted approach for higher-risk building assessments.
Government brings British Steel into public ownership.
UKCW Birmingham returns with bold new theme and focus.
New guidance published on competence requirements for self-certification schemes.
Construction Management, 8 July
NEETs crisis drives interest in trades, but apprenticeships barriers remain.
Passive fire protection webinar
MEP services penetration seals.
Where its at podcast (and video) - The role of the Architectural Technologist as an Expert Witness.
More than 200 remarkable buildings added to SAVE’s Buildings at Risk register.


















