30-day payment is now obligatory
Published: 19 January, 2011
LONDON: Specialist sub-contractors are close to victory in their campaign for 30-day payment after the government declared it a contractual obligation.
From today there will be a common assessment or valuation date for all tiers of the supply chain on central government contracts and payment must be received down to tier three within 30 days of this date.
The move forces several main contractors working for central government to revisit their payment terms to specialist subcontractors.
Many specialists have long complained that 60-day and 90-day payments are the norm rather than the government's recommended payment period.
Mark Prisk, minister for business and enterprise, said that the decision to implement 30-day payment periods in the public sector had come as a result of listening to the National Specialist Contractors Council's Fair Payment Campaign.