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<p>The Prompt Payment Code is a voluntary Code administered by the Chartered Institute
of Credit Management (CICM) on behalf of Government. Signatories to the Code sign
up to pay 95% of invoices in 60 days, with an ambition to move toward 30-day payment
terms. Signatories who do meet the standard are invited to submit a plan to CICM setting
out clearly how they will improve their performance. Those who submit a satisfactory
plan and subsequently demonstrate compliance are suspended from the Code and can be
reinstated in the future. Those who do not engage with CICM, and fail to submit a
plan, will be removed.</p><p>Starting in September this year, suppliers could be excluded
from winning Government contracts if they fail to pay subcontractors on time. Under
the new rules, suppliers who bid for government contracts above £5m per annum, who
cannot show they are paying 95% of invoices within 60 days, risk being prevented from
securing government contracts. We have contacted all suppliers reminding them of this
initiative and their responsibilities on prompt payment.</p><p> </p>
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