Regulation 113 of the Public Contract Regulations 2015: What You Need to Know
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.
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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.
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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.
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