Code Criteria

Code signatories undertake to:

1) Pay suppliers on time

  • within the terms agreed at the outset of the contract
  • without attempting to change payment terms retrospectively
  • without changing practice on length of payment for smaller companies on unreasonable grounds

2) Give clear guidance to suppliers

  • providing suppliers with clear and easily accessible guidance on payment procedures
  • ensuring there is a system for dealing with complaints and disputes which is communicated to suppliers
  • advising them promptly if there is any reason why an invoice will not be paid to the agreed terms

3) Encourage good practice

  • by requesting that lead suppliers encourage adoption of the code throughout their own supply chains

Additionally, signatories undertake to pay suppliers within a maximum of 60 days* (in line with late payment legislation
requirements), to work towards adopting 30 days as the norm, and to avoid any practices that adversely affect the
supply chain.

Paying invoices within 60 days is a requirement (this is met by paying 95% of invoices within this period).

The Code Compliance Board will have the remit to investigate and, if need be, act when a term in a contract exists or changes in a way that a supplier claims to be grossly unfair.

The benefits

  • If you pay promptly, then it’s a real benefit to your supplier and potentially to you, the customer, as you could benefit too by receiving more favourable pricing or service which could make you more competitive.
  • Once approved, you can use the PPC logo on your documentation and website to show that you are serious about good payment practice.