Reg. 113 (PCR 2015)

Payment of undisputed invoices within 30 days by contracting authorities, contractors and subcontractors

In: Procure > Finalise and publish procurement pack

Overview

This regulation requires contracting authorities to include the following terms in every public contract:

  • to pay contractors any sums due within 30 days of an invoice being deemed as valid and undisputed
  • to consider and verify any invoices in a timely manner
  • the above terms to be included in any subcontract entered into by the contractor (or any subcontractor).

To the extent that the above terms are not expressly included in a public contract, equivalent terms are to be implied into the contract.

Regulation 113 also states that contracting authorities should be mindful of any contractual or statutory provision requiring payment sooner than 30 days and of any guidance issued by the Minister for the Cabinet Office.

Contracting authorities are also required to publish statistics every financial year, detailing the level of compliance with the terms of Regulation 113.

Regulation 113 does not apply to contracts awarded by a contracting authority where the contract relates to a maintained school, an Academy, a six form college corporation or relevant health care services within the meaning and scope of the Health Care Services (Provider Selection Regime) Regulations 2023.

Objective at this commercial stage

Public contracts (unless exempted from regulation 113) must contain terms relating to the prompt payment of invoices, as set out in this regulation (i.e. regulation 113).

Key considerations at this commercial stage

Contracting authorities should:

  • ensure that the public contract (unless exempted from regulation 113) contains terms relating to the prompt payment of invoices, as set out in this regulation (i.e. regulation 113)
  • consider any guidance issued by the Minister for the Cabinet Office in relation to this regulation.

See also in the Procurement Act 2023:

  • Section 68: Implied payment terms in public contracts
  • Section 73: Implied payment terms in sub-contracts
  • Section 88: Regulated below-threshold contracts: implied payment terms

Additional support and guidance

Make sure you:

  • read the regulation
  • seek legal and commercial advice in the context of specific procurements