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What it is

Bill to force checks that big contractors pay their small suppliers

Admitted step 2 of 7 · Withdrawn

It is a members’ bill. Introduced by parliamentary groups, the Senate, regional governments or citizens. It was introduced on 5 August 2016. Introduced by: Grupo Parlamentario de Esquerra Republicana.

Official title: Private member's bill amending Royal Legislative Decree 3/2011, of November 14, approving the consolidated text of the Public Sector Contracts Law, to control the late payments of large contracting companies awarded public works to SME suppliers and subcontractors.

Follow this law

Source: Congreso de los Diputados, file 122/000013· updated 11 Nov

Automatic summary, not yet reviewed

  1. The bill would amend the public procurement law so that public administrations must always verify, not just optionally, that large winners of public works contracts pay their subcontractors and suppliers within legal deadlines.
  2. Contractors would have to give the contracting authority a list of subcontractors and suppliers, their payment terms, and, once the work is done, proof that they paid on time. Breaking these rules would allow penalties set out in the contract documents.
  3. Main contractors would have to submit a certificate, issued by business associations or by the Multisectoral Platform against Late Payment, certifying that they meet the legal payment deadlines.
  4. The explanatory statement justifies the reform because, according to a study by the PMCM, large Ibex 35 companies pay on average after 171 days, almost triple the legal 60-day limit, and construction companies take up to 291 days.

Who it affects

  • Large companies awarded public works contracts: They would have to prove to the administration that they pay suppliers and subcontractors on time.
  • Small businesses, self-employed workers, suppliers and subcontractors: They would get public oversight to help them get paid sooner by large contractors.
  • Public administrations and public contracting bodies: They would be required to check contractors' payments.
  • Business associations and the Multisectoral Platform against Late Payment: They could issue the certificates proving compliance with payment deadlines.

Words worth knowing

Contratista adjudicatario
Company awarded a public works or services contract by the administration.
Subcontratista
Company working for the main contractor, not directly for the administration.
Pliego de condiciones
Document with the rules that bidders for a public contract must follow.
Penalidades
Financial penalties that can be imposed if the contract is not honored.
Texto refundido
A law that gathers and organizes earlier rules on one subject into a single text.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 2 of 7 steps. It reached Admitted, and today it is withdrawn.

  1. Introduced5 August 2016Someone registers the text in the Congreso.
  2. Admitted6 September 2016The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsnot reachedGroups propose changes.
  4. Committeenot reachedA committee goes through the text in detail.
  5. Plenarynot reachedAll 350 deputies vote.
  6. Senatenot reachedThe Senate can pass it, amend it or veto it.
  7. BOEnot reachedIt is published in the Official State Gazette (BOE) and comes into force.
See the 6 official steps on a timeline
Dec 2016Dec 201711. 5 August 2016: Presentación22. 6 September 2016: Boletín Oficial de las Cortes Generales Publicación desde 06/09/2016 hasta 09/09/201633. 6 September 2016: Calificación44. 9 September 2016: Gobierno Contestación desde 09/09/2016 hasta 17/10/201655. 17 October 2016: Pleno Toma en consideración desde 17/10/2016 hasta 18/09/201866. 18 September 2018: Concluido - (Retirado) desde 18/09/2018 hasta 21/09/2018

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

Whoever introduced it withdrew it, or it was merged into another one. It goes no further.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

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