As of 1 October 2025, companies bidding for central Government contracts over £5 million per annum must now demonstrate that they pay invoices within an average of 45 days, down from 55 days. They must also continue to pay at least 95% of invoices within 60 days (90% if an action plan is provided) otherwise they will be excluded from bidding.
The guidance to PPN 018 confirms that companies must meet both of these metrics in at least one of their two previous six-month reporting periods under the Reporting on Payment Practices and Performance Regulations, although any companies that have failed to do so may submit data that has not yet been reported for the previous three or more months. Build UK’s payment performance table shows the results for more than 130 of the industry’s largest companies, and Build UK state that all their tier one Contractor members meet the new requirement to pay invoices within an average of 45 days.
The Government is consulting on further measures to tackle late payments. The deadline for responses to the consultation is Thursday 23 October 2025.
