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 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 We’re committed to helping businesses navigate the late payment legislation and secure the compensation they’re entitled to.

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