Government contractors to pay subbies in 30 days

Grant Prior 14 years ago
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All subcontractors working on Government jobs must be paid within 30 days under a new package of measures unveiled today to help small businesses.

The Government also confirmed that at least a quarter of public contracts should be awarded to smaller companies.

Standard Pre-Qualification Questionnaires will be introduced next month when a new report on how to speed up the procurement process will also be launched.

The Government reaffirmed its commitment that 80% of prime contractors are paid within five working days and they will be required to pay their suppliers within 30 days.

For central Government construction contracts, the commitment to payment within 30 days has been made a contractual requirement and applies through the supply chain.

Minister for the Cabinet Office Francis Maude said: “We believe small businesses and social enterprises have a vital role to play in the growth of the UK economy and we are committed to making it easier for these organisations to compete for government business.

“Today’s package of measures announced by the Cabinet Office will help to remove the barriers many small businesses face and eliminate complexities and waste in the procurement process. They will also ensure we are on our way to hitting our aspiration that 25 per cent of government contracts go to small and medium enterprises.”

Companies like ABA Consulting from Derby have missed out to larger rivals in the past on public contracts.
Managing Director, Alan Brough said:  “We’ve recently applied for a contract relating to Stoke-on-Trent’s regeneration, which is being managed by a publicly-funded body appointed by the Government.
“We were chosen to be on the panel of shortlisted firms, but haven’t had any work out of it at all, and then you hear that they’re working with companies from London and elsewhere.
“There are all of these processes to go through, and I despair at it. I’m sure that the clients do as well, but these are the procedures they have to go through.”

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