The enquiry into late payments, chaired by Labour MP and campaigner against late payment Debbie Abraham, made a raft of recommendations to support small and medium sized businesses across all sectors of the economy in its final report published Friday 12 July 2013.
It found that the construction industry was one of the “worst offenders” when it came to paying late and that small companies were “bullied” by larger ones. It said “urgent” action was needed.
It said the code of conduct would be regulated by an independent ombudsman who would settle disputes.
The enquiry also recommended the government require information on a firm’s payment record as part of the pre-qualification process when it tenders work.
The MPs also said fair payment should be written into contracts on public sector jobs. It suggested that Tier one suppliers should be paid within 14 days, tier two contractors be paid within 19 days and tier three contractors paid within 23 days.