You will probably see a lot written in the coming weeks about the new Public Contracts Regulations 2015 but what do these new regulations mean in practice for employers, contractors and construction professionals?
One new of the new rules (Regulation 113) that everyone needs to be aware of is the requirement for contracting authorities to ensure that every public contract contains suitable provisions to require that payment is made no later than the end of a period of 30 days from the date on which the relevant invoice is regarded as valid and undisputed and that any subcontract awarded by the contractor contains suitable provisions to impose, as between the parties to the subcontract, the same 30 day payment terms from the contractor to the subcontractor.
This requirement applies to every contract in the supply chain no matter how far removed from the contracting authority.
The regulations come into force on 26 February so it is worth looking now at what your standard form contracts say and addressing this issue if they are not compliant.
Regulation 113 is one of a number of measures in the new Public Contracts Regulations aimed at increasing SME participation in public contracts.