{"id":138420,"date":"2024-04-03T10:15:21","date_gmt":"2024-04-03T09:15:21","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=138420"},"modified":"2024-04-03T10:15:21","modified_gmt":"2024-04-03T09:15:21","slug":"55-day-payment-deadline-5m-public-projects","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/55-day-payment-deadline-5m-public-projects\/138420\/","title":{"rendered":"55 day payment deadline for \u00a35m public projects takes effect"},"content":{"rendered":"

From April 1, companies bidding for public projects worth over \u00a35m must settle invoices within a 55 day payment deadline or face a work ban<\/h2>\n

Announced as part of the Autumn Statement,<\/a> the 55 day payment deadline<\/a> requires firms to demonstrate that they are paying 95% of their invoices within 60 days and are paying their invoices within an average of 55 days.<\/p>\n

The average will decrease to 45 days in April 2025 and 30 days in the following years.<\/p>\n

Late payments bolster SME cashflow<\/h3>\n

Speaking previously on the challenges facing SME supply chain players, Hunt said: \u201cOne of the key challenges facing SMEs is the cashflow implications of late payments, which hold small businesses back from investing and innovating. [\u2026] The government will lead by example in introducing more stringent payment-time requirements for firms bidding for large government contracts.\u201d<\/p>\n

Reporting on retention payments will be introduced in the near future<\/h3>\n

Alongside this new stricter payment rule<\/a>, proposals to introduce reporting on retention payments were also announced.<\/p>\n

For retentions, this entails that main contractors and clients must report:<\/p>\n

\u2022 The average duration for making retention payments post practical completion and end of contractual defects liability period;<\/p>\n

\u2022 The proportion of retention payments made within the reporting period: within 30 days, between 31 and 60 days, and exceeding 61 days;<\/p>\n

\u2022 The percentage of retention payments overdue within the reporting period compared to the agreed payment timeframe; and<\/p>\n

\u2022 The mean value of retention held per construction contract (% of contract value).<\/p>\n

These proposals will not come into effect until April 2025.<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

From April 1, companies bidding for public projects worth over \u00a35m must settle invoices within a 55 day payment deadline or face a work ban.<\/p>\n","protected":false},"author":21,"featured_media":138421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[908,276,621,701],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-138420","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-economy","9":"tag-government","10":"tag-sme","11":"tag-supply-chain"},"acf":[],"yoast_head":"\n55 day payment deadline for \u00a35m public projects takes effect<\/title>\n<meta name=\"description\" content=\"From April 1, 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