§ Mr. ThurnhamTo ask the Chancellor of the Exchequer what guidance has been given to Government Departments to ensure that all government contracts require suppliers to pay their sub-contractors promptly.
§ Mr. NelsonGuidance was issued on 14 April to all Government Departments and executive agencies. For all contract award procedures initiated after that date, all Government contracts are to contain a clause requiring the supplier or contractor to pay subcontractors promptly. In the absence of normal practice to the contrary for that type of contract, or other special circumstances, the commitment should be to pay the subcontractor within 30 days of receipt of a valid invoice or similar demand for payment as defined by the contract.