UK government awards contract amid bad credit

The United Kingdom Crown Commercial Service (CCS) announced that Britain’s largest construction company Balfour beatty would be hired, even though it was among the large construction companies that were recently punished for not paying suppliers on time, according to Construction index.

Balfour Beatty was suspended from the Quick payment code in April 2019. The Quick Pay Code was created in 2008, and thousands of businesses are accredited.

The CCS construction framework, lasting seven years, is made up of 11 lots divided into 38 sub-lots. This government-run construction agreement is the first for the entire public sector and allows all organizations to find companies to build schools, hospitals, prisons, housing and more.

In November, when the government selected 128 companies to participate in a roughly £ 30 billion (US $ 39.2 billion) project over seven years, Balfour Beatty was not selected for 31 of 38 sub- lots. Instead, Balfour Beatty was among 14 contractors chosen for Lot Five, a project worth over £ 80million. Three other lots are still pending. The total number of contractors used for a lot or sublot is now 136.

‘From September 1, 2019, any supplier who is bidding for a government contract over £ 5million per year will have to answer questions about their payment practices and performance,’ said the Minister of Implementation of the Cabinet, Oliver Dowden in July. If they are unable to demonstrate that they pay 95% of the bills within 60 days, they may be excluded from the process.

In April, the Cabinet office began warning businesses that rules coming into effect in September would require businesses bidding on annual contracts over £ 5million to pay 95% of invoices within 60 days, with a payment deadline target of 30 days. The rules are part of an effort to reduce the epidemic of late payments – where, as noted, up to 50,000 small businesses (SMEs) close each year due to late payments. SMEs represent 86% of the UK workforce

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