HC Deb 13 January 1992 vol 201 cc419-20W
Mr. David Evans

To ask the Secretary of State for the Environment what are the total amounts unpaid by the Property Services Agency to contractors for work completed which remain outstanding for periods in excess of (a) two years, (b) three years, (c) four years and (d) five years.

Mr. Yeo

PSA Services' policy is to make payment promptly as soon as this is due under the terms of the contract; payment will normally be made within 30 days of the presentation of a valid invoice.

Final accounts on major projects often contain claims by contractors for additional costs claimed to be outside the contractor's control. Substantiating these claims can be a slow process. Interim payments are made as sums are justified, but overall the average settlement figure is only 20 per cent. of the original amount claimed. Because of the complex nature of contractors' claims it is not possible to say with any accuracy how much will eventually be paid to contractors for claims currently being discussed and negotiated.