Payment delays in public contracts: your rights and remedies

On a public contract, the number-one danger for an SME is not losing the bid: it is being paid too late. You commit materials, wages and subcontractors well before the public buyer disburses anything — and a mere shift of a few weeks can strain an otherwise healthy treasury.

The good news: you are not powerless. The rules guarantee you a regulated payment deadline and, when it is exceeded, the payment of moratorium interest. Knowing this mechanism — and keeping flawless documentation — is the best protection for your cash flow. This article explains the principles; always verify the exact deadlines and rates against the official texts in force and your contract (CPS).

Why payment delays are so dangerous for an SME

On a public contract, the order of operations works against you: you finance execution before you are paid.

• You buy materials and mobilize teams from the very start.
• You pay your wages and subcontractors as the work progresses.
• You only cash in after acceptance and certification of the service rendered — then commitment of the order and payment.

Between the outlay and the receipt, the company carries the working capital need on its own funds or supplier credit. In that context, a delay of a few weeks is not an accounting detail: it can be enough to stop you paying a supplier, to block another site, even to weaken a perfectly profitable SME. Late payment is a liquidity risk, not a mere administrative annoyance.

The framework of payment deadlines

The public-procurement rules cap the maximum time the public buyer has to pay. The key idea: the deadline does not start from your invoice alone, but from the moment the work is officially recognized as performed.

A payment generally follows these steps:

1. Acceptance — the buyer checks that the services, supplies or works delivered conform to the contract.
2. Certification of the service rendered — the reality of the work is certified, often through an acceptance report (PV).
3. Liquidation and order for payment — the exact amount due is settled, then the order to pay is issued.
4. Payment — the public accountant proceeds with the disbursement.

The regulated deadline runs from a precise starting point — generally the duly established certification of the service rendered. That is why a clean file from the outset mechanically speeds up payment: every missing or disputed item suspends or delays the countdown. The exact durations and their conditions are set out in the applicable texts and your CPS: verify them case by case.

Your rights — moratorium interest

This is the point many leaders overlook: once the regulated payment deadline is exceeded, moratorium interest is in principle due.

Two principles to remember:

• As of right. Moratorium interest is generally due without the company having to formally claim it: it flows from the very exceedance of the deadline. You do not have to “earn” a compensation the rule already provides.
• Calculated against a scale. The rate and the calculation method are set by the texts in force and the contract. Never assume a percentage: always refer to the current official sources.

In practice, knowing this right exists changes your posture: a delay is not a fate to be endured in silence, but a situation the rules already address. Still, your file must be flawless, because it is what establishes the date from which the deadline should have started.

The right reflexes to get paid on time

Getting paid on time depends less on a power struggle than on documentary rigor. A few simple reflexes make the difference.

• Flawless invoicing. Amounts, contract references, mandatory mentions, attachments: an incomplete or erroneous invoice is sent back, and the clock does not start.
• Secure the acceptance report (PV). It is the document that materializes the service rendered. Obtain it, date it, keep it: without it, the deadline’s starting point is contestable.
• Track deadlines actively. Record the theoretical start date and the payment due date of every invoice. Anticipated tracking beats a reminder after the fact.
• Send structured reminders. A written, courteous, referenced reminder (contract, invoice and PV numbers) is more effective than an informal call — and it leaves a trace.
• Escalate through the proper channels. If the delay persists, use the remedies provided by your contract and the texts: formal claim, referral to the competent contacts, and where applicable the dedicated dispute-resolution procedures.

Financing the wait

Even when well managed, deadlines exist. Anticipating how to finance them is part of the job.

• The advances provided by the rules. Certain advances (start-up, on supplies) can reduce the initial cash need. Check the conditions that apply to your contract.
• Factoring. Assigning your receivables to a factor lets you cash in quickly, at a cost. Useful when the gap is structural.
• Dedicated bank lines. Overdraft, campaign credit, receivable mobilization: to be negotiated upstream with your bank, never in a rush.

The golden rule remains selection: target only contracts you can fund through to final receipt. A contract won that drains your treasury is a bad contract.

In summary

Late payment is a real risk, but not a fate to be endured. The rules arm you: a regulated deadline, and moratorium interest due as of right when it is exceeded. Your two best protections are anticipation — knowing how to finance the wait — and clean documentation — flawless invoice and PV that establish your rights.

It is also a matter of upstream selection. Tools like Ogerant help you spot the opportunities that are genuinely suited — and fundable — so you commit only to contracts your treasury can carry.