William Eichler 17 July 2018

Majority of councils ‘in breach’ of payment practice rules

Majority of councils ‘in breach’ of payment practice rules image

Almost nine out of 10 local authorities are currently in breach of the rules governing payment practices, according to freedom of information data.

According to data obtained by ECA and BESA, 89% of local authorities are not monitoring if their supply chain is getting paid within 30 days for construction work.

The trade bodies submitted FoI requests to 321 local authorities. 195 responded.

The results revealed that almost half (49%) of local authorities do not have, or don’t know whether they have, a built in contractual requirement for 30-day payment.

Almost one in five (18%) councils said they had no intention of building in contractual requirements for 30-day payment.

The Public Contracts Regulations 2015 state that 30-day payment down the supply chain is mandatory, and that public bodies should take steps to ensure this takes place.

Rob Driscoll, deputy director of business and policy at ECA, commented: ‘Non-compliance by the public sector with the Public Contracts Regulations is unacceptable.

‘This is especially significant given the cautionary tale of the collapse of Carillion – one of the key strategic suppliers to Government – which ultimately had a wider impact on SMEs.

‘If Government purports to support fairer payment practices, these findings show that there is work to be done. ECA and BESA will continue to work with industry and Government to deliver a fairer payments system in construction.’

Highways jobs

Service Manager – Network Management

Somerset County Council
£46,122 per annum
A number of exciting permanent opportunities have arisen to drive forward further improvements to our traffic related services. Somerset
Recuriter: Somerset County Council

Principal Traffic Control Engineer

Somerset County Council
£33,799 to £37,849 per annum
A number of exciting permanent opportunities have arisen to drive forward further improvements to our traffic related services. Somerset
Recuriter: Somerset County Council

Assistant Engineer

Bedford Borough Council
£31,371 - £32,878 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Senior Clerk of Works

Bedford Borough Council
£27,905 - £30,507 + market rate supplement £2,630 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Senior Technician

Bedford Borough Council
£27,905 - £30,507 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Local Government News

Latest issue - Local Goverrnemnt News

The June issue of Local Government News contains the full details of all the winning schemes in the 2019 Street Design Awards. From Children's Play to Pedestrian Environment, find out who has been recognised for their innovation and use of best practice.

This issue also explores how local government pension funds can hedge currency risk, how councils can best address the shortfall in school places, and an update on the number of authorities banning the use of Roundup over safety fears.

Register for your free magazine