When regulation 113 was included in the Public Contracts Regulations 2015, it appeared to herald a long-awaited improvement in payment times for supply chain firms engaged on public sector contracts. The regulation states that “contracting authorities shall ensure that every public contract […] require[s] […] that any payment […] is made no later than the end of a period of 30 days from the date on which the relevant invoice is regarded as valid and undisputed”.

It goes on to require that this provision is inserted into subcontracts and sub-subcontracts. Where such provision is absent from the relevant contract, the regulation implies a term that payment must be made within 30 days.

The major problem with regulation 113 is the lack of effective enforcement. Moreover, firms in the supply chain are usually too afraid to file a complaint

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