William Eichler 17 July 2018

Majority of councils ‘in breach’ of payment practice rules

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.’

SIGN UP
For your free daily news bulletin
Highways jobs

Housing Assurance Service Manager

Kirklees Metropolitan Council
£55,675 - £56,649
We’re building a brand-new assurance team in our Homes & Neighbourhoods service Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Trainee Public Health Practitioner

Kirklees Metropolitan Council
£24,404 - £24,790
Working within the Kirklees Public Health Improvement team Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Climate Change Officer

Kirklees Metropolitan Council
£40,476 - £42,708
Are you a passionate and enthusiastic Climate Change Officer Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Transition Home Manager

Durham County Council
Grade 13 £45,718 - £49,764 (Pay Award Pending)
Could you support young people to realise their individual potential and prepare them for their journey towards independence. NOT JUST A PLACE OF WOR Durham
Recuriter: Durham County Council

SEND and Inclusion Senior Specialist Support Worker (Communication and Interaction Team)

Durham County Council
Grade 8 £31,586 - £35,235 (Pay Award Pending)
We are recruiting a SEND & Inclusion Senior Specialist Support Worker to join our Specialist SEND & Inclusion Team. We would be particularly intereste Spennymoor
Recuriter: Durham County Council
Linkedin Banner