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, 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 

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.

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