The Procurement Act: Are You Compliant?

The Procurement Act 2023 finally came into force in February 2025, bringing critical mandates for public bodies. The requirement to prove 30-day payments to SMEs through the whole supply chain is a real challenge, and comes with financial penalties for non-compliance. Simply making payments on time isn't enough; consistently proving that compliance across complex supply chains can be an administrative nightmare.

Public sector construction clients have 3 choices:

• Do nothing and hope you don’t get caught and fined.
• Periodically audit the entire supply chain for every project.
• Use Digital Parallel Payment Accounts (DiPPAs) to manage project payments.

DiPPAs enforce prompt payment practices and generate a complete audit trail of payment authority. No more manual reconciliation, no more chasing elusive data points.

With DiPPAs, you get:

• Effortless Compliance: Automatically enforce and prove adherence to the Procurement Act's 30-day payment rule.
• ‍Unrivaled Auditability: Get a complete, incontrovertible audit trail for every transaction, ensuring robust governance and accountability.
• ‍Intelligent Transparency: Provide only the necessary information (anonymised or aggregated as required), at the necessary time, to the necessary person.
• ‍Enhanced Social Value: Easily demonstrate project funds reaching SMEs and local businesses, reinforcing your social impact.
• ‍Reduced Admin Burden: Free up your teams from time-consuming manual reporting, allowing them to focus on strategic initiatives.

How is your organisation approaching verifiable compliance with the Procurement Act 2023? Are you confident in your current reporting capabilities?