Case Number 3559
Request Date 27/03/2014
Completion Date 23/04/2014

 

Details of the Request

Please note that the information requested relates to your construction procurement activities over the past 12 months.

  1. What monitoring and reporting do you have in place to check whether your main contractors are paying their sub-contractors within 30 days?
     
  2. If your response to Q1 is in the negative what other steps does your organisation take to ensure fair payment is applied along construction supply chains?
     
  3. Please provide information showing the average time taken by your organisation to discharge payments to your direct or main contractors?
     
  4. Do you apply a cash retention in your works contracts?
     
  5. If you apply a cash retention what use do you make of the cash whilst it’s in your possession?
     
  6. Have you or are you about to put in place project bank accounts on your construction projects?
     
  7. Please provide information about any plans which your organisation has for improving payment performance along the supply chain [e.g. making payments to sub-contractors within 30 days (of the main contract due payment dates) a pre-qualification requirement for lead contractors].
     
  8. Has your organisation been using PAS 91 as the pre-qualification standard to be the exclusion of other pre-qualification requirements?
     
  9. If you are not currently using PAS 91 as the exclusive route to pre-qualification does your organisation have plans to use PAS 91 (exclusively) in the future?

 

Details of the Response

1. What monitoring and reporting do you have in place to check whether your main contractors are paying their sub-contractors within 30 days?

Our contractual arrangement is with the main contractor. The contractual arrangements with sub-contractors are between them & the main contractor not the Trust. The Trust has no contractual responsibility to monitor payments by main contractors to sub- contractor.

 

2. If your response to Q1 is in the negative what other steps does your organisation take to ensure fair payment is applied along construction supply chains?

As above: - 1

 

3. Please provide information showing the average time taken by your organisation to discharge payments to your direct or main contractors?

In total the Trust paid 89.5% of all non-NHS supplier invoices within 30 days of receipt of goods or a valid invoice during financial year 2013/14. We do not measure the average time taken to pay suppliers.

 

4. Do you apply a cash retention in your works contracts?

Larger projects have a 5% retention during the works which is reduced to 2.5% at practical completion.

 

5. If you apply a cash retention what use do you make of the cash whilst it’s in your possession?

The funds sit within the Trust’s bank account.

 

6. Have you or are you about to put in place project bank accounts on your construction projects?

No.

 

7. Please provide information about any plans which your organisation has for improving payment performance along the supply chain [e.g. making payments to sub-contractors within 30 days (of the main contract due payment dates) a pre-qualification requirement for lead contractors].

The Trust has no plans at the present time.

 

8. Has your organisation been using PAS 91 as the pre-qualification standard to be the exclusion of other pre-qualification requirements?

PAS 91 is a pre-qualification questionnaire adopted by Constructionline in 2013. We make some use of Constructionline when selecting contractors to tender.

 

9. If you are not currently using PAS 91 as the exclusive route to pre-qualification does your organisation have plans to use PAS 91 (exclusively) in the future?

There are currently no plans to use PAS 91 exclusively at present.