Public body procurement reports and strategies 2023 to 2024: analysis

8. Prompt payment

The 2014 Act details within what time period payments against public contracts should be made throughout the supply chain.

(d) “…The following payments are made no later than 30 days after the invoice (or similar claim) relating to the payment is presented—

(i) payments due by the authority to a contractor,

(ii) payments due by a contractor to a sub-contractor,

(iii) payments due by a sub-contractor to a sub-contractor.”

Procurement Reform (Scotland) Act 2014 (asp 12), Section 15(5)(d) (Scottish Government, 2014)

This chapter presents the findings on information related to prompt payment in public bodies’ annual procurement reports and strategies.

During the 2023 to 2024 reporting period, 108 public bodies (86%, n=124) reported, in their annual procurement reports, the percentage of their invoices that were paid on time.^[34] Based on this reported data, public bodies’ average prompt payment rate was 89% (n=108) in the 2023 to 2024 reporting period.

One hundred and thirteen annual procurement reports (91%, n=124) provided information on the total number of valid invoices received during the 2023 to 2024 financial year. This represented a total of 8.2 million valid invoices overall.

As shown in Table 8.1, a total of 3,965 regulated contracts awarded (n=105) contained a contract term requiring the prompt payment of invoices in public contract supply chains.

One hundred and five annual procurement reports (85%, n=124) included information on the number of concerns raised by sub-contractors about the timely payment of invoices within the supply chain of public contracts during the 2023 to 2024 financial year. This represented a reported total of 57 concerns.

Source: 2023 to 2024 annual procurement reports