Procurement Bill to mandate prompt payment
The Cabinet Office leads on how the Government spends some £300bn of public funds annually. It is currently navigating the post-Brexit Procurement Bill – which will shape how the public sector buys goods, services and works - through Parliament, on the way to it becoming law.
ECA’s Rob Driscoll Chairs the Cabinet Office Payment Advisory Group. This Group has been raising high level awareness that, while current UK enactment of EU law states tiers 1, 2 and 3 should be paid in 30 days under public sector contracts, there has been no reliable way of knowing if this really happens. However, following a meeting with Ministers Baroness Neville-Rolfe and Brendan Clarke-Smith MP this month, Rob Driscoll advises that the forthcoming Bill now includes provisions to establish 30-day payment within the public sector by:
- ensuring 30-day payment will be a mandatory implied term into tier 1, 2 and 3 construction contracts – overriding any other payment terms within relevant contracts (widely regarded as a milestone achievement); and
- requiring public sector procurers to report on their payment performance in the same way as the private sector.
Should the new provisions be enacted as currently proposed, non-compliance would then be dealt with by the Public Procurement Review Service, supported by the Small Business Commissioner.
This article first appeared on the ECA news and blog site under the same title dated October 14, 2022.
--ECA
[edit] Related articles on Designing Buildings
- Connected procurement.
- Difference between procurement and purchasing.
- European Single Procurement Document ESPD.
- Maintenance Repair Operations MRO.
- Procurement policy.
- Procurement route – frequently asked questions.
- Procurement strategy.
- Public procurement.
- Renovate, operate, transfer (ROT).
- Subcontract procurement.
- Transforming Public Procurement Green Paper.
- Two-stage tender.
- What is the most common procurement route?
Featured articles and news
Principal Contractor Competency Certification Scheme
Proving competency as a principal contractor with CIOB.
Discover and contribute to our specialist wiki microsites
Conservation, BIM, Diversity, AONBs and Circularity.
BIG Biodiversity Challenge and Awards 2024
Deadline extended to June 26 with two new categories.
Biodiversity net gain, tips and tools for small sites
How to deal with BNG when options become limited.
The benefits of breathable external wall insulation
Not just energy efficiency, but also wellbeing.
IEQ and net zero, thermal comfort, air quality and noise
Four free key guides for all that you need from BSRIA.
A systematic approach to conservation.
A brief description and use from traditional to contemporary.
Delivering on a sustainability policy and action plan
How ECA exceeded its carbon reduction targets.
UKCA and CE marking; changes in detail
Pre and post brexit, now and the future of product certificates.
Construction product certification schemes
The role, background to and types of products certificates.
The construction industry ramps up for the general election
Election manifestos, charters, campaigns and comments.
Collaboration benefits of real-time file synchronisation
Three areas for users to focus on.
Time to recognise construction’s top talent.
Future of Green Skills in Sussex
A report on the incoming Green Skills revolution.
Sustainable Futures: Redefining Retrofit for Net Zero Living
The BSRIA Briefing 2024.