Working for government through third-party suppliers

Hello everyone. I've just joined this forum, though I've been a member of the BPPG for several years.

I wanted to know if anyone else had experienced problems in getting paid by government departments since the new arrangements on procurement were introduced in January 2012. My work is for an executive agency of the Department for Education, which has always paid me within 10 days, but they are now obliged to go through a third party, Creative Choice, which is handling all their invoicing arrangements.

Payment of my invoices has slipped dramatically: between March and July 2012, I have done £19,000 worth of work and received only £3,000 in payment. Most of the time I am pushed between the government agency and Creative Choice as they are each blaming the other for the delays. The explanations are the usual (no purchase order numbers etc) but Creative Choice are also saying they cannot pay me until they have received the money from the government agency, while the government agency claims they are having to obtain the money from the Department for Work and Pensions. It's a complete mess, in short.

One thing I feel is very isolated so that's why I'd like to know if there are other people experiencing similar problems.

Hi Deborah,

You aren't alone as we have a couple of clients that are in exactly the same position...

We have found that the addition of charges does focus the mind of some gov agencies, you may also want to consider writing to your MP or Mark Prisk at the BIS :)

Thanks for your support! I have got an appointment to see my MP on Friday about it, but the contact name at BIS is very helpful too, thank you. I will be writing to the chief executives of both agencies (when I've got the money and not before!) but I also fully intend to charge interest and compensation and also to pursue the matter anyway because I think this is a common problem and I don't see why small companies should be shafted by a government that is supposed to be standing up for us.

How did you get on with your MP?

Thank you for following this up: he was sympathetic and I think will be quite active about it - I have had a letter saying he has written to both organisations in the first instance. One bill has since been paid, but that might be a coincidence as the others are still overdue.

I may have to come here for advice on charging interest etc but at the moment I am just calculating it for each invoice as it is paid and keeping a record. Should I do an invoice for all the interest payments, or separate invoices? I am determined to get compensation for this; it has been very upsetting and stressful for me and my family as I am the main breadwinner and like most people have a mortgage to pay and food to buy!

Thanks for your help, I will keep you updated.

Deborah wrote:

Thank you for following this up: he was sympathetic and I think will be quite active about it - I have had a letter saying he has written to both organisations in the first instance. One bill has since been paid, but that might be a coincidence as the others are still overdue.

It's good that he has written to both organisations and I'm sure we would all be very interested in their response (if any).

Deborah wrote:

I may have to come here for advice on charging interest etc but at the moment I am just calculating it for each invoice as it is paid and keeping a record. Should I do an invoice for all the interest payments, or separate invoices? I am determined to get compensation for this; it has been very upsetting and stressful for me and my family as I am the main breadwinner and like most people have a mortgage to pay and food to buy!

You don't have to issue a separate invoice for each charge, just outline the charges for each invoice on a single invoice. E.g.

Invoice 001 Value £100 - Paid XX Days Late - £40 costs £XX Interest
Invoice 002...

And that should be sufficient whilst keeping your admin time down :)

Deborah wrote:

Thanks for your help, I will keep you updated.

Our pleasure and please do!