PROCUREMENT NEWS Suppliers could lose out on public contracts if they fail to pay on time

time running out


On 17 July 2019 the UK Government announced that suppliers winning public contracts could lose out in the future if they fail to pay their supply chain on time.

Minister for Implementation, Oliver Dowden CBE, has also urged public sector organisations to lead by example by paying their suppliers within 30 days.


Suppliers MUST pay their supply chain on time

After it was revealed that more than £2.5m in late payments from the public sector had been unblocked over the past year, Mr Dowden has said:

“We are being very clear with government suppliers that they must pay their supply chain on time or face losing future government contracts.

“So, it’s only right that we say to the public sector that they must lead by example and make sure their suppliers are paid on time.”

The latest warning from the Government states that suppliers must pay 95% of their invoices within 60 days. If they fail to do this, they run the risk of being prevented from securing future government contracts.

The Government’s new Crown Representative for Small Business, Martin Traynor OBE, is backing the latest announcement. Mr Traynor said:

“Making sure companies in the government supply chain are paid on time is very important – particularly for small businesses.

“The difference between waiting 60 days and having to wait 90 days can be make-or-break for many small companies, so it’s vital that both the private and public sector work better in this area.”


Public sector contracts

Public sector organisations including schools, hospitals and government departments have been reminded of the need to pay their suppliers on time.

The UK Government also wants private suppliers to be more organised moving forward, and will be carrying out spot checks to make sure payments are made on time.

If your business is already winning work with the public sector and is interested in expanding its reach with Tracker Intelligence, learn more on our Public Contracts page.