Prompt payment of invoices
We recognise the importance of cash flow to all companies, especially small firms and have adopted the Better Payment Practice Code, and have a clear policy to pay bills in accordance with the terms of the contract. Where no contract terms are specified, our policy is to pay within 30 calendar days of receipt of a correct invoice.
You can help to make sure invoices are paid promptly by checking that all invoice details are accurate, including the purchase order number, and that the invoice is correctly addressed. Let us know about changes of name, address or bank details as soon as possible. To help us pay quickly, we pay suppliers through Bankers Automated Clearing Service (BACS).
Our contracts now include a clause saying that if you employ sub-contractors you are expected to pay them promptly, too. Any sub-contractors who are not being paid within the 30 day period should first raise their concern with the Department by sending an email to DfTprocurementpolicy@dft.gsi.gov.uk providing the title and reference number of the contract and the nature of their complaint. Should this not be resolved to the supplier’s satisfaction, this can be escalated to the Office of Government Commerce Supplier Feedback Service.
You can view the department’s latest prompt payment performance here.