Contractors Suspended from Public Sector Work for Late Payment

THE LATEST construction companies suspended from the Prompt Payment Code and therefore excluded from public sector contract work are contractors: Alun Griffiths, Galliford Try, Ferrovial Agroman (UK), Severfield and building materials business: Screwfix, as well as consulting firm Stantec.

They join a total of 33 companies on the ‘suspended’ list compiled by the Chartered Institute of Credit Management (CICM), on behalf of the Department for Business, Energy and Industrial Strategy (BEIS).

The Prompt Payment Code was introduced in 2016, requiring signatories to commit to paying 95% of suppliers within 60 days.

The government has said all public sector organisations must pay their suppliers within 30 days.

The Minister for Implementation, Oliver Dowden, 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.”

Late Payment Complaints

The government’s Public Procurement Review Service (PPRS) allows suppliers to raise any concerns they have about public sector buying and prompt payment.

Statistics published in the latest PPRS Progress Report show that between April 2018 and April 2019, the team unblocked more than £2.5m in late payments. The PPRS carries out spot checks to check if payments are made on time.

There were 61 complaints received from suppliers about late payments by contractors to the public sector and 8 complaints about late payments made by central government.

The government’s Crown Representative for small businesses, Martin 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.”

The following signatories have been temporarily suspended from the Prompt Payment Code:

AB World Foods
Alun Griffiths
BAE Systems Applied Intelligence Limited
BAE Systems Global Combat Systems Limited
BAE Systems (Oman) Limited
Balfour Beatty Plc
British American Tobacco (Holdings) Limited
British Sugar UK
BT plc
Centrica
Costain Limited
De La Rue Holdings plc
DHL
Domino UK Ltd
Engie Services Limited
Ferrovial Agroman (UK) Limited
Fujitsu Services Limited
Galliford Try PLC
GKN Plc
Interserve Construction
John Sisk & Son Limited
Kellogg Brown & Root Limited
Laing O’Rourke
Maintenance Management Limited
Persimmon Homes Limited
Prudential
Rolls-Royce Plc
R. Twining and Company Limited
Screwfix
Severfield (Design & Build) Ltd
SSE
Stantec UK Limited
Vodafone Limited