FOI Request - Construction Procurement

Request 101000272273

1.  What monitoring and reporting do you have in place to check whether your main contractors are paying their sub-contractors within 30 days?

2.  If your response to Q1 is in the negative what other steps does your organisation take to ensure fair payment is applied along construction supply chains?

3.  Please provide information showing the average time taken by your organisation to discharge payments to your direct or main contractors?
4.  Do you apply a cash retention in your works contracts?

5.  If you apply a cash retention what use do you make of the cash whilst it’s in your possession?

6.  Have you or are you about to put in place project bank accounts on your construction projects?

7.  Please provide information about any plans which your organisation has for improving payment performance along the supply chain [e.g. making payments to sub-contractors within 30 days (of the main contract due payment dates) a pre-qualification requirement for lead contractors].

8.  Has your organisation been using the standard Pre-Questionnaire (SPQQ) template to be the exclusion of other pre-qualification requirements?

9.  If you are not currently using SPQQ as the exclusive route to pre-qualification does your organisation have plans to use SPQQ (exclusively) in the future?

Response 07-08-2014

1.  None at present although our open book policy with our framework contractor means we can check

2.  See 1 above

3.  86% of our payments to Contractors are made within 30 days of receipt of invoices

4.  Yes - depending on the value retention is held on contract payments up until Practical completion when half the retention is released until issue of the Certificate  of Making Good Defects is issued. Generally, on contracts up to £250,000 retention is held at 5%, and over £250,000 retention is held at 3%

5.  None

6.  This is currently under review

7.  We have had discussions with Head of Payments to try and ensure the 14 day payment terms are adhered to.

8.  Yes - exclusively

9.  N/A

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