New prompt payment rules that could see slow-paying contractors facing a ban on bidding for public work have now come into force.
Companies bidding for large contracts must now show they can pay all invoices to their suppliers in an average of 55 days and pay 95% of all invoices within 60 days or will be excluded from bidding on future public work contracts.
The new stricter payment rules, which came in force yesterday, were first announced in Jeremy Hunt’s Autumn Statement.
Deadlines will be further tightened next April to 45 days, then 30 in the following years.
