PPN 05/15 (PCR 2015)

Prompt payment and performance reporting

In: Manage > Receive goods, services and issue payments

Overview

This PPN applies to all central government departments including their executive agencies and non departmental public bodies (collectively referred to as 'in-scope organisations').

The PPN restates the policy on prompt payment for central government and sets our reporting requirements on prompt payment. In-scope organisations are to report their performance in connection with the payment of invoices by:

a) publishing the percentage of invoices paid within (i) 5 days and (ii) 30 days, on a quarterly basis

b) publishing all interest liable, under the late payment legislation (referring to the Late Payment of Commercial Debts (Interest) Act 1988), on a quarterly basis.

The Mystery Shopper service (now referred to as the Public Procurement Review Service or PPRS) will assist in ensuring contracting authorities comply with the above measures. The PPRS will also proactively ensure that 30 day payment terms are being passed down the supply chain.

Objective at this commercial stage

Invoices should be paid promptly, with reporting on payment performance conducted quarterly in accordance with this PPN (i.e. PPN 05/15).

Key considerations at this commercial stage

In-scope organisations should:

  • ensure sufficient processes are in place to report on payment performance in accordance with the requirements of this PPN (i.e. PPN 05/15).

The PPN should be read alongside the relevant parts of the legal framework, including but not limited to, the following provisions of the Public Contracts Regulations 2015 (which may be particularly relevant to the consideration of this PPN):

  • Regulation 113: Payment of undisputed invoices within 30 days by contracting authorities, contractors and subcontractors

Additional support and guidance

Make sure you:

  • read the PPN and any supporting implementation guidance
  • seek legal and commercial advice in the context of specific procurements
Read the PPN

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