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Government forces public bodies to pay suppliers within 30 days

Date posted: 18 February 2015   |   Posted in: Blog

Public sector organisations will soon be legally required to settle all supplier contracts within 30 days.

The Cabinet Office confirmed on Wednesday that new public procurement rules will come into force on 26 February.

They also require all public contracts to contain a condition requiring contractors to include similar provisions in their contracts, and so on down the supply chain.

Pre-qualification questionnaires, which are often a barrier to small businesses securing public sector contracts, will also be removed in any procurement where the value is below the EU threshold for goods and services; currently £111,676 in central government and £172,514 outside central government.

In addition, contracting authorities that opportunities above certain thresholds must advertise them publicly on the new Contracts Finder website.

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Source: BusinessZone

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