Procurement Act 2023

Prospective

Terms implied into public contracts U.K.

67 Electronic invoicing: implied term U.K.

(1) The term set out in subsection (2) is implied into every public contract entered into by a contracting authority.

(2) The contracting authority must accept and process for payment any electronic invoice issued to the authority for payment under the contract which is—

(a) in the required electronic form, and

(b) not disputed by the authority.

(3) For the purposes of the term in subsection (2)—

• “electronic invoice” means an invoice which is issued, transmitted and received in a structured electronic format that allows for its automatic and electronic processing;

• “required electronic form” means a form that—

  (a)

  complies with the standard for electronic invoicing approved and issued by the British Standards Institution in the document numbered BS EN 16931-1:2017 (Electronic invoicing - Part 1: Semantic data model of the core elements of an electronic invoice), and

  (b)

  uses a syntax which is listed as a syntax that complies with that standard in the document numbered PD CEN/TS 16931-2:2017 (Electronic invoicing - Part 2: List of syntaxes that comply with EN 16931-1) approved and issued by the British Standards Institution.

(4) A reference to a standard or document is a reference to the standard or document as it stands—

(a) on the day that the contract is entered into, or

(b) if the parties agree, on the day on which the invoice is issued.

(5) Any term purporting to restrict or override the implied term is of no effect.

(6) The implied term does not prevent a contracting authority—

(a) requiring the use of a particular system in relation to electronic invoices;

(b) in the case of a defence authority (as defined in section 7(5)), requiring the use of a system that requires the payment of fees by the supplier.

(7) An appropriate authority may by regulations amend this section for the purpose of changing what it means for an invoice to be in the required electronic form.

(8) Before making regulations under subsection (7), an appropriate authority must consult such persons as the authority considers appropriate.

Commencement Information

I1 S. 67 not in force at Royal Assent, see s. 127(2)

68 Implied payment terms in public contracts U.K.

(1) The terms in subsections (2) to (5) are implied into every public contract entered into by a contracting authority, except a public contract that is—

(a) a concession contract,

(b) a utilities contract awarded by a private utility, or

(c) a contract awarded by a school.

(2) Any sum due to be paid under the public 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 payment falls 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) Any term purporting to restrict or override the terms implied by this section is without effect.

(7) 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).

(8) For the purposes of the terms in subsections (2) to (5), an invoice is valid if—

(a) it is an electronic invoice issued in the required electronic form, or

(b) it sets out the minimum required information and meets any other requirement set out in the contract.

(9) 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.

(10) An appropriate authority may by regulations amend this section for the purpose of changing the period within which a sum due under a contract must be paid, but the period may not exceed 30 days.

(11) In this section—

• “electronic invoice” and “required electronic form” have the meanings given in section 67(3);

• “payee” means the person due to be paid under the invoice concerned;

• a reference to a contracting authority receiving an invoice includes a reference to an invoice being delivered to an address, or through an electronic invoicing system, specified in the contract for the purpose.

Commencement Information

I2 S. 68 not in force at Royal Assent, see s. 127(2)