Payment terms with suppliers and sub-contractors (FOI)

​Request

I should like to request the following information relating to payment terms with your suppliers; and of any sub-contracting or outsourcing works involving Carillion since 1 January 2016.

For all four questions, I have listed the possible responses after the question for you to select.

Payment

A

For civil engineering, construction and building maintenance contracts (including frameworks) established since 1 January 2017, have you incorporated into contractual requirements for your main contractors / suppliers to pay the suppliers directly below them in the supply chain within 30 days (or are you taking steps to apply this)?

a. We have built in a contractual requirement for payment to flow through the supply chain within 30 days routinely

b. We are taking steps to apply a contractual requirement for payment to flow through the supply chain within 30 days routinely

c. We have not and will not be building in a contractual requirement for payment to flow through the supply chain within 30 days

d. If you don't know, please provide information on what policy you do pursue

B

For civil engineering, construction and building maintenance contracts (including frameworks) established since 1 January 2017, have you, or will you, be putting in place monitoring and reporting whether your main contractors/suppliers are paying their sub-contractors / suppliers within 30 days?

a. We are already monitoring and reporting that payment takes place within 30 days routinely

b. We will be monitoring and reporting that payment takes place within 30 days routinely

c. We don't and will not be monitoring and reporting that payment takes place within 30 days

d. If you don't know, please provide information on what policy you do pursue Carillion

C

Have you sub-contracted or outsourced (through framework agreements or otherwise) any civil engineering, maintenance or construction work to Carillion (or any of their subsidiaries or joint venture vehicles) since 1 January 2016?

a. Yes

b. No

c. Don't know 

D

For any sub-contracted or outsourced civil engineering, maintenance or construction work let to Carillion (or any of their subsidiaries or joint venture vehicles) since 1 January 2016, did you insert a contractual requirement into any of the contracts for Carillion to pay suppliers directly below them in the supply chain within 30 days; and was there ever any monitoring undertaken to check compliance for any of these contracts?

a. Yes to inserting a contractual requirement only

b. Yes to monitoring only

c. Yes to both

d. No to both

e. Don't know 

Response

The following table lists the departmental responses to the questions asked above.

Table of Departmental responses