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Government: Contractors

Volume 705: debated on Wednesday 19 November 2008

asked Her Majesty's Government:

Which contractors of the Ministry of Justice do not pay their suppliers within 30 days; and what representations they will make to these contractors about withholding retentions from subcontractors, in accordance with the Office of Government Commerce's fair payment charter. [HL6122]

The Ministry of Justice does not hold information about which construction contractors do not pay their suppliers within 30 days or are withholding retentions from subcontractors. To identify and communicate with all suppliers would be disproportionate in terms of cost and time. My department is reviewing recommended action in respect of the OGC’s Guide to Best Fair Payment Practice—Construction Procurement 2007.

asked Her Majesty's Government:

Which contractors of the Department of Health do not pay their suppliers within 30 days; and what representations they will make to these contractors about withholding retentions from subcontractors, in accordance with the Office of Government Commerce's fair payment charter. [HL6125]

The department does not centrally collect data on contractors who do not pay their subcontractors within 30 days. The department is committed to the Government's target of paying all satisfactory invoices within 30 days of the date of the individual invoice. The department has recently committed to making payments to small and medium-sized enterprises within 10 days.

The retention of the value of work executed by the contractor or any nominated subcontractor on large-scale projects is 10 per cent. Subject to satisfactory completion, this is released in stages on contract completion. This is in line with the Office of Government Commerce's fair payment charter. The department would support a subcontractor if he experienced difficulty getting paid by the department's prime contractor.