Procurement Act: PPN 021: Payment Spot Checks in Public Sub-Contracts

This PPN sets out how contracting authorities can spot check their public contract supply chains to ensure suppliers meet the payment terms in the Procurement Act 2023.

Being paid promptly for work done is critical for business cash flow and the government is committed to tackling late payment to businesses. Prompt payment
ensures liquidity spreads throughout the economy, helps more small businesses within public procurement, and improves the resilience of public supply chains.

Section 73(1) of the Procurement Act 2023 implies 30-day payment terms into every public sub-contract. This Procurement Policy Note (PPN) outlines how contracting authorities can use spot checks to ensure that 30-day payment terms are being implemented throughout the supply chain in public sub-contracts.

For more information on this PPN click here.