Government is now taking into account a company’s approach to payment in the procurement of public sector contracts above £5 million per annum. Companies will be asked to demonstrate the following over a 12-month period:
- Whether it has paid its suppliers in accordance with the contractual terms that it applies to its supply chain; and
- Whether, overall, it has paid 95% of invoices within 60 days.
Where a company does not meet the required standard, it may be excluded from bidding.