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
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.
- 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.