Procurement Act 2023 · PART 6 Below-threshold contracts

88 Regulated below-threshold contracts: implied payment terms

s. 88 · in force: yes

Captured statutory text (L5)

88 Regulated below-threshold contracts: implied payment terms

(1)The terms in subsections (2) to (5) are implied into every regulated below-threshold contract entered into by a contracting authority.

(2)Any sum due to be paid under the contract by the contracting authority must be paid before the end of the period of 30 days beginning with—

(a)the day on which an invoice is received by the contracting authority in respect of the sum, or

(b)if later, the day on which the sum first became due in accordance with the invoice.

(3)The term in subsection (2) does not apply if the contracting authority—

(a)considers the invoice invalid, or

(b)disputes the invoice.

(4)On receiving an invoice from a payee, the contracting authority must notify the payee without undue delay if—

(a)it considers the invoice invalid, or

(b)it disputes the invoice.

(5)A contracting authority may rely on a payment made by a third party to satisfy the term in subsection (2) only with the agreement of the payee.

(6)For the purposes of the terms in subsections (2) to (5), an invoice is valid if it sets out the minimum required information and meets any other requirement set out in the contract.

(7)The minimum required information is—

(a)the name of the invoicing party,

(b)a description of the goods, services or works supplied,

(c)the sum requested, and

(d)a unique identification number.

(8)The terms in subsections (2) to (5) are also implied into any contract that is wholly or substantially for the purpose of performing (or contributing to the performance of) all or any part of the contract referred to in subsection (1).

(9)But for the purpose of subsection (8), references in those terms to the contracting authority are to be read as references to the person to whom goods, services or works are supplied for the purpose of performing (or contributing to the performance of) all or any part of the contract referred to in subsection (1).

(10)Any term purporting to restrict or override the terms implied by this section is without effect.

(11)But nothing in this section prohibits the parties to a contract from agreeing that a sum due under the contract must be paid earlier than would be required by the term in subsection (2).

(12)A Minister of the Crown or the Welsh Ministers may by regulations amend this section for the purpose of changing the number of days referred to in subsection (2), but the number of days may not be more than 30 days.

(13)In this section—

(a)“payee” means the person due to be paid under the invoice concerned;

(b)a reference to a contracting authority receiving an invoice includes a reference to an invoice being delivered to an address specified in the contract for the purpose.

Full captured verbatim text

(1) The terms in subsections (2) to (5) are implied into every regulated below-threshold contract entered into by a contracting authority.

(2) Any sum due to be paid under the contract by the contracting authority must be paid before the end of the period of 30 days beginning with—

(a) the day on which an invoice is received by the contracting authority in respect of the sum, or

(b) if later, the day on which the sum first became due in accordance with the invoice.

(3) The term in subsection (2) does not apply if the contracting authority—

(a) considers the invoice invalid, or

(b) disputes the invoice.

(4) On receiving an invoice from a payee, the contracting authority must notify the payee without undue delay if—

(a) it considers the invoice invalid, or

(b) it disputes the invoice.

(5) A contracting authority may rely on a payment made by a third party to satisfy the term in subsection (2) only with the agreement of the payee.

(6) For the purposes of the terms in subsections (2) to (5), an invoice is valid if it sets out the minimum required information and meets any other requirement set out in the contract.

(7) The minimum required information is—

(a) the name of the invoicing party,

(b) a description of the goods, services or works supplied,

(c) the sum requested, and

(d) a unique identification number.

(8) The terms in subsections (2) to (5) are also implied into any contract that is wholly or substantially for the purpose of performing (or contributing to the performance of) all or any part of the contract referred to in subsection (1).

(9) But for the purpose of subsection (8), references in those terms to the contracting authority are to be read as references to the person to whom goods, services or works are supplied for the purpose of performing (or contributing to the performance of) all or any part of the contract referred to in subsection (1).

(10) Any term purporting to restrict or override the terms implied by this section is without effect.

(11) But nothing in this section prohibits the parties to a contract from agreeing that a sum due under the contract must be paid earlier than would be required by the term in subsection (2).

(12) A Minister of the Crown or the Welsh Ministers may by regulations amend this section for the purpose of changing the number of days referred to in subsection (2), but the number of days may not be more than 30 days.

(13) In this section—

(a) “payee” means the person due to be paid under the invoice concerned;

(b) a reference to a contracting authority receiving an invoice includes a reference to an invoice being delivered to an address specified in the contract for the purpose.

What this provision means

Model summary, checked against the text on the left.

Relevance to Signicat: 1/3 · detailed summary (L4) Status: not needed for a short provision · Stored artifact; current recipe verification unavailable

Regulated below-threshold contracts and performance subcontracts imply payment terms within a statutory period for valid invoices containing minimum statutory particulars.

Only the one-line summary above is stored for this provision; the text itself is the evidence.

Refers to

No captured references.

Referred to by

No captured references.

Part summaries

0 of 0 parts have a verified summary.

L1 unavailable for current verification: the overall summary needs every part verified. Provisions and the verified summaries remain readable.

Verification findings (391)

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synthesis coverage: missing/unverified L2 schedule-11

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Instrument tier unavailable

Change history as published

Sch. 9 para. A1 and cross-headings omitted (24.2.2025) by virtue of The Procurement (Miscellaneous Amendments) (Wales) Regulations 2025 (S.I. 2025/181), regs. 1(2), 3(4)(a)

Sch. 9 para. B1 and cross-headings omitted (W.) (31.12.2025) by The Procurement Act 2023 (Specified International Agreements) (Amendment) (Wales) Regulations 2025 (S.I. 2025/1361), regs. 1(2), 3(2) (with reg. 4)

Sch. 9 para. C1 and cross-headings omitted (W.) (31.3.2026) by virtue of The Procurement Act 2023 (Specified International Agreements) (Amendment) (Wales) Regulations 2026 (W.S.I. 2026/97), regs. 1(2), 2(2) (with reg. 3)

Pending effects amendments not yet applied to this text

No captured pending effects.

Provenance

Every claim the system makes about this text is traceable to these identifiers.

Instrument: uk:ukpga/2023/54
Part: PART 6 Below-threshold contracts
Version: 1f42cbe2e52b2d3b319dfe92…
Content hash: sha256 fbfd39360842f67e131f359b…
Source: legislation.gov.uk/ukpga/2023/54