As of 1 October 2025, companies bidding for Government contracts over £5 million from central government departments, their executive agencies and non-departmental public bodies, must now demonstrate that they pay invoices within an average of 45 days, down from 55 days. This requirement was brought in following representations of ECA (Electrical Contractors' Association) to Government.
Suppliers bidding for Government contracts over £5 million must also continue to pay at least 95% of invoices within 60 days (90% if an action plan is provided) otherwise they will be excluded from bidding.
Guidance to PPN 018 confirms that companies must meet both of these metrics in at least one of their two previous six-month reporting periods under the Reporting on Payment Practices and Performance Regulations. However, any companies that have failed to do so may submit data that has not yet been reported for the previous three or more months.
ECA has also led the industry on getting Government to stop payment abuse – including retentions!
But if we don’t get numbers of responses to Government consultation, we won’t get it over the line.
We need you to copy, paste and send the Member response template.
Here is a video about ECA's stance on the issue too.
Last updated 06 October 25