From 1 April 2024, companies bidding for Government contracts over £5 million per annum will have to demonstrate that they pay invoices within an average of 55 days and at least 95% within 60 days (90% if an action plan is provided) as set out in PPN 10/23.
The guidance to the PPN confirms that companies must meet both 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 125 of the industry’s largest companies, and all Build UK tier one Contractor members meet the new requirement to pay invoices within an average of 55 days.
The Cabinet Office has confirmed that under the Procurement Act the way that the public sector reports payment performance will be aligned with the private sector to improve transparency. Build UK currently publish the data on the Build UK website and it will be updated as contracting authorities across the whole public sector are required to publish reports every six months via a central Government portal. The specific metrics, which will be aligned to the private sector as called for by Build UK, will be set out in secondary legislation in the coming months.
Source: Build UK (15.2.24)
