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Government Clarifies 30day payment rules

12/10/2016

October 12 2016 Cathie Clarke Geen categorie

Government Clarifies 30day payment rules

Government Clarifies 30day payment rules

Following representations from construction body the Specialist Engineering Contractors’ (SEC) Group, a revised statutory guidance has now been issued to clarify the start point of 30-day payment clauses within construction supply chain contracts.

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The 2015 Public Contracts Regulations placed a statutory duty on UK government departments/agencies and public bodies in England to insert 30-day payment clauses into supply chain contracts.However, the original statutory guidance issued under the regulations did not specify a trigger point in construction contracts for the commencement of the 30 days.

Under the new guidance, it is clear that on public works contracts, Tier 1, 2 and 3 contractors must be paid within 30 days of the issue of a payment notice.

SEC Group chief executive, Professor Rudi Klein, explained that subcontractors (and sub-subcontractors) should now expect to be paid, at the latest, within 30 days following expiry of the five-day period (after the payment due date) allowed for issuing statutory payment notices.

He said: “This clarification will benefit thousands of construction supply chain firms working on public sector jobs.  The statutory guidance also advises public bodies to use project bank accounts to ensure that supply chain firms are paid within the 30 days.”

SEC Group has already referred complaints to the government’s complaints service, the Mystery Shopper Scheme, regarding failure by some public bodies to ensure that 30-day payments are being made along the supply chain.

Source: Construction Manager