1st. July 2016:
The Department of Jobs, Enterprise and Innovation invites Requests for Tenders (RFT) for the provision of a six month public campaign to promote awareness of the Prompt Payment Code (PPC) and to advocate membership across business in Ireland.
Since the launch of the Prompt Payment Portal on 31 March 2015 – www.promptpayment.ie, sign-up by business has been particularly slow. To date, despite the promotion of the PPC at various information seminars, less than 40 businesses from the private sector have signed up. Government has led by example and all Government Departments, their Agencies and Public Sector bodies are signatories to the Code. For the PPC to work it is important that more businesses sign up – big and small – and make an important commitment to “pay on time”.
The objective of this six month campaign, therefore, is to:
(i) Develop an awareness among business owners in Ireland that the PPC exists, thereby promoting a prompt payment culture
(ii) Advocate membership of the PPC, with particular emphasis on businesses themselves committing as signatories to the Code and also for them to advocate other businesses to follow suit
(iii) Engage with relevant stakeholders including business representative bodies, sectoral interest groups and professional associations.
Deadline for receipt of Tenders:
12 noon, 29th, July 2016.
For more information on the Request for Tender visit http://www.eTenders.gov.ie
Signatories to the Code agree to:
Pay suppliers on time
- within the terms agreed at the outset of the contract, or 30 days, in accordance with legislation
- without attempting to change payment terms retrospectively
- without changing practice on length of payment for smaller companies on unreasonable grounds
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
Encourage good practice
- by requesting that lead suppliers encourage adoption of the code throughout their own supply chains
Why become a signatory to the Code?
If you pay promptly it is a real benefit to your supplier and potentially to you, the customer, as you could benefit by receiving more favourable pricing or service, which could make you more competitive.
Once approved, you can use the PPC Seal on your documentation and website to demonstrate that you are serious about prompt payment practice.
The Irish Institute of Credit Management is pleased to administer the Prompt Payment Portal.
Cashflow is important in every company and the timeliness of when the invoice is settled is vital. Being paid to agreed terms is the only way that projected margins from sales can be achieved. Companies need to pay to agreed terms to allow cash to flow smoothly within each part of the supply chain. The Prompt Payment Code is about encouraging and promoting best practice between organisations and their suppliers.
Shay Waldron, Director of Education. IICM is delighted to be afforded the opportunity to work with the Department for Jobs Enterprise and Innovation and all stakeholders in the Prompt Payment Code. The PPC will bring about the necessary culture change in paying suppliers to ensure that Ireland has a level paying field with its European neighbours. To compete internationally we need to look to home first and ensure that we play fair, by paying fair. The adoption of the Prompt Payment Code will ensure that suppliers and customer’s develop mutually beneficial relationships based on trust.
Getting paid on time
It is important that your invoicing procedures are accurate and timely to ensure you can get an invoice approved and paid promptly.
Read here to learn what best practices can help your existing process.