Complying with the prompt payment code can be challenging! Here's everything you need to know...

Prompt Payment Code:
A Short Guide for Contractors

 

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Download your short guide to the Prompt Payment Code

What's covered in the guide

Understanding the Prompt Payment Code is vital if you run a construction business that works on public sector contracts.

Although the Prompt Payment Code is straightforward in theory, complying with the standard can be challenging in practice; so, we’ve provided all the information that you need to understand Prompt Payment in this short guide for contractors. 

In this guide we look at:

  • What is the Prompt Payment Code?
  • What's changed?
  • What are the challenges?
  • Reasons for following Prompt Payment 
  • How technology can help

Prompt Payment Code - what do you need to know?

The government introduced a significant update to the Prompt Payment Code back in 2021 and compliance with the standard effectively became mandatory for any business that bids on major government contracts. Complying with the reformed Prompt Payment Code now requires:

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Responsibility

A senior person at the buying company (CEO, CFO etc.) to personally take responsibility for payment practices.

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Annual Report

Signatories to produce an annual report and explain any delays.

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Late payment interest

Signatories to allow suppliers to charge late payment interest on delayed invoices.

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Communication

If the buyer cannot pay the supplier within the agreed timeframe, they must contact suppliers to explain why.

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Prompt Payment Code: A Short Guide for Contractors

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