Payment Spot Checks on Public Sector Jobs Another Win for Construction Payment Culture

All projects worth over £5m could be examined in an attempt to uphold 30-day payment times.  

Last Thursday (24 April) Cabinet Office advised public sector bodies that from 1 October 2025, they should “conduct spot checks on invoices at random to deter non-compliance with the terms set out in the Procurement Act 2023”.  

“[They will also] be able to conduct targeted spot checks where an authority has assessed there to be an increased risk of poor performance.” 

“We know strong cashflow builds resilience, and helps small companies to grow,” said Daniel Elmer, senior policy advisor at the Cabinet Office. 

The Procurement Act 2023, which came into force in February earlier this year, requires 30-day payment terms throughout the public sector supply chain, and places a duty on contracting authorities to encourage SME participation.  

The Act stipulates that payment must be made within 30 days of a valid invoice being received, rather than within 30 days of it being validated.  

NFRC commends the government's efforts to tackle the culture of late payment within construction. NFRC has campaigned hard for years on an end to retention payments and a better payment culture and this is a step in the right direction. Further action is required, but it is clear that the government is finally taking the issue seriously.  

NFRC, which has received the Gold Fair Payment Code badge, encourages other businesses within construction to commit to timely payment, freeing up cashflow and enhancing productivity across the sector.