Introduction

Understanding who the contracting authorities are is crucial for businesses supplying goods or services to the public sector. Not only to stay compliant with local laws and regulations, but also for successful strategic planning, risk assessment, and tailored bidding. 

This guide will help you identify these authorities and understand their obligations under the Public Contract Regulations 2015.

What is a Contracting Authority?

In public procurement, a contracting authority refers to any public body that enters into a contract for goods, works, or services. This broad definition covers a diverse range of organisations in the public sector.

It essentially refers to any organisation that receives public funds and needs to purchase goods, services, or construction projects.

Contracting authorities are:

• Affiliated with the public sector (government agencies, publicly funded organisations, or entities controlled by the government).
• Responsible for overseeing procurement processes
• Obliged to conduct procurement in a transparent and fair manner, following legal rules and regulations
• Accountable for the expenditure of public funds
• Expected to publish documents related to procurement opportunities, like invitations to bid, requests for proposals (RFPs), or contract award information
• Required to comply with specific procurement laws and regulations 

Identifying Contracting Authorities

Contracting authorities come in many forms, reflecting the diverse nature of public services in the UK. Here are some examples of the types of bodies that can act as contracting authorities:

1. Central Government Departments: These include bodies like the Ministry of Defence, the Department of Health and Social Care, and the Department for Education.
2. Local Authorities: This encompasses city, district, borough, and county councils.
3. NHS Bodies: NHS trusts, NHS Foundation Trusts, and Clinical Commissioning Groups (CCGs) all come under this umbrella.
4. Educational Institutions: Universities, colleges, and academy trusts can also be contracting authorities.
5. Housing Associations: Often, these bodies are involved in large public contracts.
6. Utilities Providers: Certain utilities providers, especially those in sectors like water, energy, and transport, can be classed as contracting authorities.
7. Non-Departmental Public Bodies (NDPBs): These are bodies that operate independently of ministerial departments but carry out public functions. Examples include the Environment Agency and the BBC.
8. Executive Agencies: Bodies like the Driver and Vehicle Licensing Agency (DVLA) and the Passport Office fall under this category.

Verifying Contracting Authorities

If you’re unsure whether an organisation is a contracting authority, you can take a few steps to confirm:

1. Check Official Lists: Some lists, like the UK Government’s list of government departments, provide a clear reference. However, not all contracting authorities are listed here.
2. Examine the Organisation’s Status: Public sector organisations often mention their status on their websites or official documents.
3. Seek Legal Advice: If you’re still unsure, consider seeking legal advice to avoid potential issues in the future.

Obligations of Contracting Authorities

All these bodies are bound by the Public Contract Regulations 2015 when acting as contracting authorities, which implements the European Union’s directives on public procurement.

This includes adhering to Regulation 113, which mandates 30-day payment terms.

Non-compliance and Late Payment Claims

If a contracting authority fails to meet its obligations, businesses can often make a late payment claim. This process can be complex, but specialist services like latepaymentaction.com can help. We offer an Eligibility Checker to check if you are entitled to compensation and a Claim Calculator to estimate how much you could expect to receive.

Our expert team will navigate the claim process for you, maximising your chances of success and helping you to ensure timely payments from the public sector.

Check out our comprehensive FAQ page for more details on the claims process.

Final Thoughts

Identifying contracting authorities is a crucial first step for any business seeking to work with the public sector. By understanding who these bodies are and their legal obligations, companies can better navigate the public procurement process and ensure they receive adequate compensation for late payments.

Have you received late payments from the public sector? Get in touch to see if you’re eligible for compensation.

Introduction

Are you a contracting authority or business supplying goods and services to a public sector body? If so, understanding Regulation 113 of the Public Contract Regulations 2015 is crucial. This regulation forms a major part of the UK’s legal framework for public sector contracts and can impact your organisation. To guide you, this article provides an in-depth overview of Regulation 113. We’ll explore its implications for businesses and how to leverage it in late payment claims.

Understanding Regulation 113

Regulation 113 primarily mandates that all contracting authorities pay their suppliers within 30 days of receiving a valid and undisputed invoice. The regulation also requires that they include this 30-day payment term in all contracts down the supply chain.

In line with the Late Payment Legislation, interest becomes payable on the outstanding amount of all undisputed invoice payments not paid within this 30-day period.

Implications for Businesses

The introduction of Regulation 113 was a significant milestone for businesses supplying goods and services to the public sector. It aims to ensure prompt payment, helping to improve cash flow for businesses, particularly SMEs. However, despite these legal responsibilities, not all public bodies consistently comply with this regulation.

Non-compliance and Late Payment Claims

If public sector bodies do not comply with Regulation 113, this can lead to businesses making a late payment claim under the Late Payment of Commercial Debts (Interest) Act 1998. This legislation allows businesses to claim interest and compensation on the impact of late payments.

Making a Late Payment Claim

Making a late payment claim can seem daunting, but specialist services like latepaymentaction.com can simplify the process. We offer an Eligibility Checker to quickly determine if you can make a claim. In addition, our Claim Calculator can estimate the potential value of your claim. Once you’ve completed these steps, our expert team will handle your claim for you, keeping you updated and maximising your chances of success.

Check out our comprehensive FAQ page for more information on the process.

Challenges and Considerations

Despite the existence of Regulation 113, some businesses may find it challenging to enforce it due to fear of damaging their relationships with public sector clients. It’s crucial to remember that the law is on your side, and public bodies have a legal obligation to pay invoices on time.

The Role of the Procurement Bill

The proposed Procurement Bill aims to strengthen the existing regulations and provide additional protections to suppliers. While it’s not yet in force, businesses should keep an eye on its development as it could significantly impact late payment claims.

Check our Insights hub regularly for the latest news and developments.

Next Steps

Regulation 113 of the Public Contract Regulations 2015 plays a crucial role in protecting businesses from the impact of late payments in public sector contracts. Understanding this regulation and its implications can help enterprises to ensure they receive fair compensation for late payments from the public sector.

If you believe you’re entitled to make a late payment claim, don’t hesitate to get in touch with latepaymentaction.com. We’re committed to helping businesses navigate the late payment legislation and secure the compensation they’re entitled to.

Introduction

Late payments can present a significant challenge for businesses, affecting cash flow and potentially leading to more serious financial issues. Fortunately, specialist services like latepaymentaction.com can help you navigate the complex process of making a late payment claim. This saves time and resources. In addition, it ensures your business gets fair compensation for the impact of delayed payment. This article explores the benefits of using a specialist service to make late payment claims. 

What is a Specialist in Public Sector Late Payment Claims?

It’s a team of experts who handle each step of the process, from gauging your eligibility to estimating how much you could be entitled to. 

Additionally, this type of service will support you through the entire claim process, keeping you updated along the way. Thanks to their expertise in this area, these specialists can maximise your chances of making a successful claim.

6 Benefits of Using Late Payment Specialists 

There are plenty of advantages to enlisting the services of late payment claims experts. Here are the most notable rewards your business can expect to reap.

1. Expert knowledge and experience

Making a late payment claim can be complex and time-consuming, particularly for businesses with previous experience. Specialist services have the expertise and familiarity with the Late Payment of Commercial Debts (Interest) Act 1998 and the Public Contract Regulations 2015 to navigate the process efficiently.

For instance, at latepayment.com, we’ll leverage our years of industry experience to maximise your chance of a successful claim and advise you each step of the way.

2. Saves time and resources

Pursuing late payment claims can significantly drain a business’s resources. This is particularly true for small businesses that may not have dedicated legal or financial departments. Specialist services manage the entire process on your behalf, allowing you to focus on your core business operations. You’ll receive regular updates on the process without dedicating valuable time or resources.

3. Access to legal advice

Specialist services often have legal professionals in their teams who can provide valuable advice and guidance, helping businesses understand their rights and potential courses of action.

4. Better negotiation power

With their extensive experience and understanding of the legislation, specialist services are often better positioned to negotiate with debtors and secure a satisfactory resolution for their clients.

5. No win, No fee services

Many specialist services, like latepaymentaction.com, operate on a no-win, no-fee basis. This means you only pay a fee if the claim is successful, reducing the financial risk involved in making a claim.

6. Easy-to-use tools

Leading specialist services often offer tools that make the claim process easier for businesses. For instance, at latepaymentaction.com, we provide an Eligibility Checker to determine if you can make a claim. Moreover, our Claim Calculator will estimate the potential value of your claim.

Our comprehensive FAQ page and resource hub offer helpful advice on the process, and our dedicated team are always on hand.

A Final Word on Using a Late Payment Claims Specialist

Facing late payments alone can be daunting, but using a specialist service to make late payment claims can significantly simplify the process. These services offer expert knowledge and experience, save businesses valuable time and resources, and provide access to legal advice and tools to streamline the process. That way, you can focus on everyday business operations while we work on your behalf to get the compensation you deserve.

If your business is struggling with late payments, consider using a specialist service to help you exercise your rights and secure the compensation you’re entitled to. Visit our Make a Claim page to start the process with latepaymentaction.com today.

Introduction

Cash flow problems, wasted time and resources…late payments can cause significant issues for businesses. Fortunately, the Late Payment of Commercial Debts (Interest) Act 1998 and the Public Contract Regulations 2015 provide a means of recourse. However, making a successful claim can sometimes be a daunting process. In this article, we will provide a step-by-step guide on how to maximise your chances of a successful late payment claim.

What is a Late Payment Claim?

A late payment claim is when a business seeks compensation from a public body or contracting authority for receiving late payment for goods or services provided. By law (more on that below), public sector organisations are obliged to pay undisputed invoices within a 30-day period. Failure to do so means the business that receives the late payment is entitled to claim compensation.

Boost Your Chances of a Successful Late Payment Claim

Claiming compensation for late payments from the public sector can be a daunting task, but there are some ways to improve your chances of success. Simply follow our step-by-step guidelines.

Step 1. Understand the legislation

The first step is to familiarise yourself with the legislation that governs late payments. The Late Payment of Commercial Debts (Interest) Act 1998 allows businesses to claim late payment interest and compensation. Meanwhile, the Public Contract Regulations 2015 stipulate a 30-day payment term for public sector contracts. 

Visit our pages on the Late Payment of Commercial Debts (Interest) Act 1998 and the Public Contract Regulations 2015 for a detailed understanding of these pieces of legislation.

Step 2. Ensure your invoices are correct

One of the main reasons for delayed payments is incorrect or incomplete invoices. Therefore, make sure your invoices contain all the necessary details and adhere to the contractual requirements. An accurate invoice will decrease the chance of disputes and can expedite the payment process.

Step 3. Keep clear records

Maintain clear and accurate records of all your transactions. This includes contracts, purchase orders, delivery notes, invoices, and any correspondence related to the payment. These records will serve as crucial evidence if you need to make a late payment claim.

Step 4. Communicate effectively

Establish clear lines of communication with your clients. If a payment is late, reach out to them promptly before taking any further action. It could be an oversight or a simple administrative error that can be quickly resolved.

Step 5. Know when to make a claim

Understanding the right time to make a claim is crucial. A claim for late payment interest and compensation can be made as soon as a payment is late. However, it’s often worth discussing the issue with your client first, as this can sometimes lead to a quicker resolution.

Step 6. Get professional help

Navigating the process of making a late payment claim can be complicated and time-consuming. Fortunately, enlisting specialist services like latepaymentaction.com can help you make a successful claim. We provide a straightforward Claim Process and offer an Eligibility Checker to see if you can make a claim. The free Claim Calculator can help you estimate how much you could be entitled to.

Browse our FAQ page for more information on the process, or get in touch with our team of advisors.

Key Takeaways

Late payments can significantly impact businesses, but the right knowledge and approach can help you successfully recover what you’re rightfully owed. Understanding the legislation, maintaining clear records, communicating effectively, and getting professional help can maximise your chances of a successful late payment claim.

Visit our Insights page for more advice on dealing with late payments. And remember, you don’t have to face late payments alone. At Late Payment Action, we’re here to help you exercise your rights and get the compensation you deserve.

Introduction

Late payments can cause significant issues for organisations. For businesses supplying the goods and services, untimely payment can cause cash flow issues and impact operations. On the other hand, organisations making late payments are at risk of legal action and having to fork out compensation. This article will explore the legal consequences of late payments and how they can impact organisations.

The Legal Framework Surrounding Late Payments

In the UK, the legal framework surrounding late payments primarily comprises the Late Payment of Commercial Debts (Interest) Act 1998 and the Public Contract Regulations 2015. These pieces of legislation provide for late payment interest and compensation that businesses can claim from debtors.

The Consequences of Late Payments

Untimely payments can have significant consequences for debtors (those who pay late) and creditors (those who receive late payments). This section breaks down the impact on both types of businesses.

Impact of Late Payments on Debtors

Late payments can lead to several legal consequences for debtor organisations:

1. Late payment interest: The Late Payment of Commercial Debts (Interest) Act 1998 allows businesses to charge interest on late payments at a rate of 8% plus the Bank of England base rate. This interest can accumulate, significantly increasing the amount owed.
2. Compensation: The Act also provides for a fixed sum of compensation to cover the cost of recovering a late payment.
3. Legal costs: If a creditor decides to take legal action to recover the debt, the debtor may also be liable for the creditor’s reasonable costs of doing so.
4. Reputation damage: Persistent late payments can harm an organisation’s reputation, making it harder to secure contracts in the future.
5. Potential for legal action: Continuous late payment can result in legal action, leading to further financial implications and potential damage to an organisation’s reputation.

Impact of Late Payments on Creditors

For creditor organisations, late payments can also lead to a range of issues. These include:

1. Cash flow problems: Late payments can cause serious cash flow problems, impacting daily operations and potentially leading to insolvency.
2. Time and resources: Chasing late payments can drain time and resources, diverting them from core business activities.
3. Potential for legal action: Creditors may need to take legal action to recover debts, which can be a lengthy and costly process.

What Can You Do?

If you’re facing late payment issues, it’s essential to know your rights. Working with specialist services to make your claim can help you to navigate the process and get the best result possible.

At latepaymentaction.com, our expert team can help you navigate the process of making a late payment claim on your behalf. We provide a straightforward Claim Process and offer an Eligibility Checker to determine your entitlement to compensation.

Check out our dedicated legislation pages for more information on the laws and regulations surrounding late payments.

Taking Action

Late payments can lead to significant legal consequences for both debtor and creditor organisations. As such, it’s essential to understand your rights and take appropriate action to mitigate the impact of late payments. Stay informed and prepared, and remember that you’re not alone in this process – we’re here to help.

Our Insights page is packed with resources to help you better understand your rights, and our team of experts is always on hand to support you through each step of the process.

Visit our Make a Claim page to start the process today.

Introduction

Late payments can cause cash flow issues, strain relationships, legal problems, and hinder business growth. As a result, ensuring timely payments is a critical aspect of managing public sector contracts. Here, we’ll delve into five strategies to ensure timely payments when dealing with public sector contracts.

Understanding the Payment Terms in Public Sector Contracts

The Public Contract Regulations 2015 governs public sector contracts in the UK. These regulations stipulate a 30-day payment term for valid and undisputed invoices. As a business, it’s crucial to familiarise yourself with these regulations and ensure they are adhered to in your contracts. Visit our page on the Public Contract Regulations 2015 for more detailed information.

5 Steps to Ensure Timely Payments

As a business, you’ve likely experienced late payments occasionally and know first-hand the impact they can have. Fortunately, there are some steps you can take to reduce late payments. Here are five tried and tested strategies.

1. Clear and accurate invoicing

Invoices should be clear, accurate, and compliant with the contractual requirements. Any errors can lead to disputes and delays in payment.

2. Regular communication

Maintain regular communication with your public sector clients. This can help address potential issues promptly and ensure that payments are processed on time.

3. Early delivery and prompt invoicing

Deliver your goods or services early and issue your invoices promptly. This can provide some buffer time for any unexpected delays in the payment process.

4. Understand the Payment Process

Familiarise yourself with the payment process of the public sector organisation. Knowing who to contact and how to follow up on late payments can help expedite the process.

5. Use of Technology

Leverage technology to streamline your invoicing process. Automated invoicing systems can reduce errors and speed up the payment process.

How to Deal with Late Payments

Despite your best efforts, late payments can still occur. So, it’s crucial to know how to handle these situations. The Late Payment of Commercial Debts (Interest) Act 1998 allows businesses to claim late payment interest and compensation from debtors. 

Fortunately, you don’t need to navigate these complex legislation or claim processes alone. At latepaymentaction.com, we specialise in helping businesses make late payment claims. Follow the steps below to start claiming back compensation owed to you:

1. Browse our resources

Visit our FAQ page for more information on how the claim process works. Additionally, our Insights hub has a wealth of articles, advice, and resources on managing public sector contracts and dealing with late payments.

2. Check if you’re eligible to make a claim

Use our free Eligibility Checker to determine if you can make a late payment claim.

3. Find out how much you can claim

Next, use our Claim Calculator to get an estimate of how much compensation you could claim back from late payments.

4. Start the claim process

We designed our Claim Process to be as straightforward as possible so you can quickly recover your money. 

Simply click on Make a Claim and follow the onscreen instructions. Then, our team of specialists will send you an electronic claim pack to complete. After that, we’ll take control of the process and give you regular updates on its progress.

Our detailed FAQ page covers the most common questions about the process.

Next Steps

Ensuring timely payments in public sector contracts requires proactive management and a thorough understanding of the payment process and related legislation. While detailed information and advice are in our Insights section, most businesses prefer to work with special services, such as latepaymentaction.com. 

Don’t let late payments hinder your business growth. If you’re facing late payment issues, check out our Eligibility Checker to see if you can make a claim. Alternatively, get in touch with our expert team for a consultation today.

Introduction

Public procurement can be an excellent opportunity for your business. However, navigating the public procurement process is often daunting, particularly if you’re new to the public sector. From complex regulations to competitive bidding to compliance standards, there’s a lot to consider. This guide aims to clarify the public procurement process, helping your organisation to take advantage of the opportunities within the sector.

What is Public Procurement?

Public procurement is a process where government bodies or public sector organisations purchase goods, services, or works from external companies. This process is regulated by a set of rules and principles, primarily the Public Contract Regulations 2015 in the UK. 

These regulations aim to ensure transparency, fairness, and competition in government spending. The rules are generally influenced by European Union directives, although there have been several changes post-Brexit. There are currently proposed changes to this bill in the works, which could further simplify the public procurement process.

Understanding these regulations is crucial for businesses wishing to participate in public procurement.

Steps in the Public Procurement Process

While the public procurement process can vary depending on jurisdiction and the type of procurement, it generally involves the following steps:

Step 1. Identification of need

Public sector organisations or contracting authorities identify the need for goods, services, or works. This need forms the basis for a procurement exercise.

Step 2. Developing specifications

The public sector organisation develops specifications detailing suppliers’ needs and the quantity and scope. This is known as a procurement plan, and it helps ensure that the procurement aligns with the organisation’s goals and budget constraints. These specifications form part of the tender documentation.

Market research is sometimes required to help organisations make informed decisions.

Step 3. Advertising the opportunity

Once the scope is clearly defined, the procurement opportunity is advertised publicly, typically through online portals like Contracts Finder in the UK.

Step 4. Tendering process

Next, interested suppliers submit bids or tenders in response to the advertised opportunity. These submissions should include technical and pricing information and any required documentation. This could consist of certifications or references. In addition, the tender must meet the specifications and comply with the submission guidelines.

Step 5. Evaluation and award

At this stage, the public sector organisation evaluates the tenders against pre-determined criteria. This usually includes the supplier’s technical expertise, pricing, qualifications, and compliance with specifications. It then awards the contract to the most economically advantageous tender.

Step 6. Contract management

Once the organisation awards the contract, both parties enter into a contract management phase, ensuring the delivery of goods, services, or works as per the contract terms. Both parties typically agree on quality control procedures, managing delivery schedules, and tracking performance metrics. In some cases, one or both parties may require regular reporting to give updates on performance and budgeting or raise disputes.

Navigating the Public Procurement Process: Top Tips

Now that you understand how the public procurement process works, it’s time to look at some actionable strategies to navigate it successfully as a supplier. Here’s a closer look.

1. Understand the regulations

Familiarise yourself with the Public Contract Regulations 2015 to understand your rights and obligations as a supplier.

In particular, it’s crucial to get familiar with Regulation 113, which mandates that all public sector bodies pay their suppliers within 30 days of receiving a valid and undisputed invoice.

Check out our Legislation page for detailed information on the regulations you should know as a supplier.

2. Monitor opportunities

Regularly check public procurement portals for new opportunities that match your business profile.

In addition, staying on top of the latest news and developments in public procurement can improve your chances of success. Our Insights page contains up-to-date details on all things related to this topic. 

3. Prepare comprehensive bids

To avoid wasting time and resources and to boost your chances of success, ensure your bids meet the specifications and include all required documentation.

4. Communicate effectively

Maintaining open lines of communication with the public sector organisation throughout the process will create a more positive experience. Moreover, it facilitates the quick and transparent resolution of disputes or issues that may occur during the project.

5. Manage contracts efficiently 

Once awarded, manage the contract effectively to ensure timely delivery and prompt payment. That includes clearly communicating and agreeing on the contract terms, expectations, and payment schedules in advance. This will help in the case of late payments.

6. Use specialist services

As a supplier, you may want to consider enlisting specialist services if you receive late payment from the public sector body. Of course, the first course of action is to discuss this directly with the public sector organisations to try and resolve it. However, if the public body pays outside of this 30-day period outlined in the Late Payment of Commercial Debts (Interest) Act 1998, you could be entitled to compensation.

Specialist services, such as latepaymentaction.com, can support you in making a late payment claim. That way, you can diminish the impact of late payments on your business.

Our team of experts will navigate the entire late payment claim process for you, leaving you to focus on daily operations. We’ll keep you posted on the progress of your claim and leverage our expertise to maximise your chances of success.

Browse our Make a Claim page for more information on how the process works.

Final Thoughts on Navigating the Public Procurement Process

Navigating the public procurement process can be a complex task, but with understanding and preparation, it becomes a viable avenue for business growth. Keeping updated on the latest changes in procurement regulations and practices is essential, so browse our Articles section for regular insights and updates.

Remember, if you encounter late payments in your public sector contracts, you can claim late payment interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998. To learn more about this process and your eligibility, visit our Eligibility Checker page.

Introduction

Late payments are a persistent issue in the public sector, often causing cash flow problems and stifling supplier growth. This can cause frustration and have a significant impact on your business. Understanding why these late payments occur is the first step toward finding solutions. Here are the top 10 reasons for late payments in the public sector.

10 Reasons Why Late Payments Happen in the Public Sector

As a supplier, receiving late payment for your services can have a knock-on effect. And while the occasional delay is inevitable, understanding the reason behind them can help you avoid similar issues. 

Here are the 10 most common reasons public sector organisations pay suppliers late.

1.  Bureaucracy and red tape

Public sector organisations often have complex approval processes involving multiple levels of bureaucracy. This red tape can delay the approval and processing of invoices, resulting in late payments.

2.  Inefficient systems and processes

Outdated, inefficient systems can cause bottlenecks in invoice processing. The lack of modern, automated systems can slow the payment process, leading to delays. This is especially true when it comes to paying external suppliers.

3.  Incorrect invoicing

Errors in invoices, such as incorrect amounts, purchase order numbers or billing addresses, can cause delays. In this case, suppliers must correct and re-submit invoices, which can take time.

4.  Budget constraints

Public sector organisations operate within strict budgets. Sometimes, funds allocated for the payment of invoices may be exhausted, leading to delays until additional funds become available.

5.  Change in personnel

Staff changes or organisational changes can disrupt invoice processing. New staff may take time to familiarise themselves with their roles, which can result in payment delays.

6.  Disputes over services or goods delivered

Disputes over the quality or delivery of goods and services can delay payment, as these issues need to be resolved before public bodies approve the invoices for payment.

7.  Lack of awareness of payment regulations

Some public sector organisations may be unaware of the Public Contract Regulations 2015, which stipulate a 30-day payment term. This lack of awareness can cause unnecessary delays.

8.  Absence of a late payment policy

Without a robust late payment policy in place, there is no mechanism to discourage late payments or penalise persistent offenders within the organisation.

9.  Poor communication

Lack of clear communication between procurement, finance, and the supplier can result in misunderstandings and delays in payment.

10. Economic and political factors

Economic downturns or political uncertainties can impact public sector budgets and cause delays in payment. Brexit, for instance, has brought about changes that public sector organisations are still adapting to.

Late payments in the public sector are a major issue impacting suppliers. Nevertheless, understanding the reasons behind these late payments can help prevent these delays or find effective solutions. Improved efficiency, modern systems, accurate invoicing, and better communication can go a long way in reducing payment delays.

What to Do if you Receive Late Payments from the Public Sector

If you’re a supplier facing late payment issues, remember that you have legal rights. The Late Payment of Commercial Debts (Interest) Act 1998 and the Public Contract Regulations 2015 protect your interests. 

The first step is to get familiar with the relevant bills and regulations. Our Legislation page can help. It contains in-depth, up-to-date information on the laws that protect your business against late payments.

For more insights into late payment issues and legislation, check out our Articles section. 

Then, you can decide whether you are eligible to claim compensation for late payments from the public sector.

Working with a specialist service like latepaymentaction.com can streamline this process and help you get late payment compensation without the hassle. Our expert team guides you through the full Claim Process, maximising your chances of a successful late payment claim.

Use our  Eligibility Checker to see if you can make a claim. Then, get an estimate on how much compensation you could get with our Claim Calculator.

Once you start your claim, we’ll take the reins and give you regular progress updates. 

That way, you can get the compensation you deserve without navigating complex legislation or claim processes.

Wrapping Up

As a supplier, identifying the “why” behind late public sector payments is the first step in addressing the issue. Not only does it help you get ahead of the problem, removing obstacles like incorrect invoices or poor communication, but it also helps you know your legal rights. If late payments persist, it may be time to consider claiming compensation. 

For more information on making a claim for late payments, visit our Make a Claim page today.

Introduction

The UK’s departure from the European Union, commonly known as Brexit, has had significant ramifications for various sectors of the economy. One area that concerns many suppliers is late payment claims against the public sector. This blog post will delve into Brexit’s impact on late payment claims against public sector organisations and what suppliers need to know.

Pre-Brexit Scenario: EU Directives and UK Legislation

Prior to Brexit, the UK was a member of the European Union and bound by EU directives. These directives covered a wide range of topics, including the public procurement process and late payments. 

As a result, the EU implemented the Public Contract Regulations 2015. These regulations govern the procurement of goods and services by public sector organisations within the European Union. The aim was to ensure fairness, transparency, competitive procurement processes, and the protection of public funds.

To learn more about these regulations, visit our Public Contract Regulations 2015 page.

In particular, Regulation 113 of this bill mandates that all public sector bodies and contracting authorities pay their suppliers within 30 days of receiving a valid and undisputed invoice. This rule works to prevent late payments to suppliers, ensure fairness, and promote a healthy business environment. 

Post-Brexit Changes to Late Payment Legislation

Following Brexit, the UK was no longer legally obliged to follow EU directives. However, the Public Contract Regulations 2015 remained in effect, preserving the 30-day payment rule. 

In addition, the Late Payment of Commercial Debts (Interest) Act 1998, another key legislation protecting businesses facing late payments, continues to apply.

In short, these critical pieces of legislation that protect suppliers against late payments from the public sector have not been affected by Brexit.

Late Payment Claims in the Post-Brexit Landscape

Despite the significant changes brought about by Brexit, the legal framework protecting suppliers from late payments remain robust. Businesses can still make late payment claims against public sector organisations that do not adhere to the 30-day payment rule. This continuity assures suppliers that their rights to timely payment remain protected, helping to mitigate the impact of late payments.

If you have received late payments from the public sector and would like to know if you’re entitled to compensation, browse our Claims Process page for more information.

The Future: The Procurement Bill

While the existing protections remain in place, the proposed new Procurement Bill may introduce further enhancements to safeguard suppliers from late payments. This legislation, currently under discussion, could reinforce the emphasis on timely payments. In addition, it may introduce stricter penalties for public bodies that consistently fail to meet their payment obligations.

As the legal and regulatory landscape continues to evolve, it’s crucial for businesses to stay informed. Keep an eye on our Articles section for the latest updates. 

Brexit’s Impact on Late Payment Claims: A Final Word

Thanks to Brexit, the UK is entering  a new era of independence. As a result,  many aspects of business and legislation are changing. However, when it comes to late payment claims against the public sector, the fundamental protections for suppliers remain intact. Companies retain the right to claim compensation for late payments under the Late Payment of Commercial Debts (Interest) Act 1998 and the Public Contract Regulations 2015.

If you believe you’re entitled to late payment compensation under the existing laws, check our Eligibility Checker to see if you can make a claim.

Introduction

Have you been impacted by untimely payments from the public sector? It may be time to brush up on the public sector legal requirements surrounding this issue.

Timely payment for goods and services is crucial in maintaining a healthy and sustainable business environment. Conversely, consistent late payments can seriously impact cash flow, business growth, and resource allocation. Understanding the legal requirements and responsibilities around invoice payments is vital for suppliers dealing with public sector organisations. Not only will it help you to prevent future late payments, but it will also help you understand your rights.

In this article, we explore the obligations of public sector organisations in the UK when it comes to paying invoices on time..

Public Sector Payment Regulations: A Brief Overview

The primary legislation governing payments in the public sector is the Public Contract Regulations 2015. Transposed from EU directives into UK law, these regulations stipulate that public bodies must pay valid and undisputed invoices within 30 days of receipt. 

We recommend visiting our Public Contract Regulations 2015 page to understand the full details of these regulations. You may also want to browse our article on Regulation 113 of this law.

The Late Payment of Commercial Debts (Interest) Act 1998

Another critical piece of legislation is the Late Payment of Commercial Debts (Interest) Act 1998. This law allows businesses to claim interest and compensation if another organisation, including public sector organisations and contracting authorities, pays invoices late. 

For further information on this act, visit our Late Payment of Commercial Debts (Interest) Act 1998 page.

Responsibilities of Public Sector Organisations

Public sector organisations are legally obligated to pay their suppliers within the stipulated time frame. Provided, of course, that the invoice is correct and undisputed. Failure to do so can result in suppliers claiming late payment interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998.

Additionally, public sector organisations must ensure their payment systems are efficient and transparent, allowing suppliers to track the status of their invoices. They must also promptly address any disputes regarding the validity or amount of an invoice.

Implications of Non-Compliance

Non-compliance with these obligations can have serious implications for public sector organisations. Apart from financial penalties, persistent late payment can harm an organisation’s reputation, leading to a loss of confidence among suppliers and potential difficulties in securing future contracts.

How to Make a Late Payment Claim Against the Public Sector

If you have received late payment from the public sector, you could be eligible to claim compensation. At latepayment.com, we help businesses navigate the claim process and get the money they deserve.

Our team of specialists take the reins, handling each step of the process so you can focus on your daily operations. We’ll use our years of expertise to maximise your chances of making a successful claim. Plus, our services work on a no-win, no-fee basis.

The first step is to check our Eligibility Calculator to see if you are entitled to compensation. 

Then, get an estimate of what you could claim back using our Claim Calculator.

Our simple and transparent claims process allows your business to get the compensation you deserve without the hassle of navigating complex legislation.

For more information, browse our comprehensive FAQ page. If you don’t find the answers you’re looking for, get in touch with our team of experts.

Staying updated with the latest developments and insights can protect your business from late payments, so keep an eye on our Articles section.

Next Steps

Adherence to the legal requirements and responsibilities around invoice payments is not just a matter of law—it also plays a significant role in maintaining healthy business relationships between public sector organisations and their suppliers. Therefore, it’s in the best interest of these organisations to ensure they meet their payment obligations promptly and efficiently.

As a supplier, you must know your rights and the public sector legal requirements under these regulations. If you’re dealing with late payments from a public sector organisation, you can make a late payment claim to recover the interest and compensation you’re entitled to. 

Visit our Eligibility Checker to see if you’re eligible to make a claim.