Following the publication yesterday of the Cabinet Office’s latest Procurement Policy Note for central government departments and related agencies, Causeway Technologies has welcomed the continued drive to improve prompt payment within the construction sector.
The requirements of PPN 08/21 will take effect from next April. It increases the threshold that major contractors and other bidders will have to meet to demonstrate they have effective payment systems in place to ensure the reliability of their supply chains and applies to regulated public contracts above £5m a year.
Rebecca Sperti, Customer Relationship Director at Causeway Technologies, said:
‘Prompt payment remains a major topic in the construction industry, and government is continuing to make it clear that delays in paying suppliers and subcontractors by major contractors and other key parties looking to undertake high value public sector contracts will not be tolerated.
‘Part of the solution to these problems can come through the adoption of ‘true’ e-invoicing platforms. The UK’s largest construction specific e-invoicing platform, Causeway Tradex underpins fast invoice processing for Prompt Payment signatories such as Balfour Beatty, Galliford Try, Kier and many others.
‘With a construction focus, Causeway Tradex makes invoice management far easier and reduces the likelihood of delays. Automatic validation against business rules and PO matching enables straight through processing to an ERP for payment which takes minutes, not days.
‘At Causeway we understand the importance of, especially now, supporting each other and to ensure we maintain a strong supply chain in construction. Building strong relationships with suppliers therefore extends to also paying them promptly."
For further information on Causeway Tradex, click here
You can find more information about the Prompt Payment code here