When the contracted goods or services are provided and accepted by the institution, the supplier must be paid. Depending on the terms of the contract, payment may be
- Made in full on completion of the contract
- In Stages – where stage payments are made during the completion of the contract, they should reflect the value of the work completed and steps should be taken to minimise the risk of any loss to the institution should be supplier default on the contract
- A proportion may be held back (a retention) until a stated period has elapsed during which the goods or services are monitored or, in construction contracts, minor problems are resolved (sometimes termed as ‘snagging’)
In some cases, the contract will require pre-payment. Where possible this should be avoided, however, where this is not possible steps should be taken to minimise the risk of any loss to the institution should the supplier default on the contract.
See also payment of invoices
Where the contract has been awarded to a non-UK supplier and is for goods that will be imported into the country, please refer to information on international trade etc.
A risk assessment for this stage of the procurement cycle is provided.