Theme 1: Communication of Process: Buyer organizations (operators and Contractors) to share with their suppliers key process that will enable on time payment 

Actions:

  1. Buyer organizations to periodically rollout its procurement cycle with key/appropriate Contractor representatives.

  2. Invoicing/payment process refreshers to occur at project kick off meetings and annually to inform contractors of invoicing process.

  3. Procurement to pay workflows to be made easily accessible or can be issued as an attachment to PO’s

  4. Entitles must cover SMEs and build communications tailored to raising awareness and education.

Theme 2: Accountability: Stakeholders to establish Single point of accountability (SPA) to manage the process, resolve issues and address escalations

Actions:

  1. Operators to have a local single point of accountability to resolve issues or as a point of escalation where system help desks are unable to resolve.

  2. Contractors to appoint a SPA/focal point for projects where invoicing requires additional due diligence (volume/value).

  3. General email to be set up by contractors for invoicing and payment communications (minimizes missed communications when contacts change/people change).

Theme 3: Performance: measures how stakeholders are performing (informs where intervention is needed, qualitative and quantitative)

Actions:

Quantitative / metrics

  1. On time invoice submission (#days to submit invoices after the work is completed). Suppliers to submit invoices no later than three (3) months after the completion of the activity (same for acceptance of invoice).

  2. Invoice rejection rate (# invoices rejected vs total number of invoices submitted). Indicator invoice quality, and payment delays.

  3. Overdue payments for pre-defined timeframe (such as 60 days overdue).

  4. On-time payments # invoices paid on time.

Qualitative:

  1. Deliverables for contract owners to be outlined as part of employee performance objectives and measures.

  2. Invoicing/Payment to be included at performance review meetings.

  3. Non-compliance audits based on areas of risk to occur annually.

  4. PO and invoicing efficiency to allow for consolidation of invoices.

  5. Written confirmation from Contractor that works done are invoiced.

  6. All contractors to share payment terms with subs, terms should not  significantly extend beyond those which the primary contactor enjoys.

  7. Protection of Payment Clause in contracts i.e. Primary contractors must demonstrate subcontractor is paid in full for previous cycle before Operator processes payment for current cycle.

Theme 4: Emergency or emergent demand: Process and controls to account for nuanced transactions 

Actions:

  1. Operators to have in place an emergency procurement process and communicate to Contractors (monitor transactions regularly and follow up to ensure PO’s are issued to cover the work).

  2. Operators to reinforce throughout the supply chain that work should not be done without the appropriate authorization/PO.

Theme 5: Sustainability: Ethics in Delivery

Actions

  1. Operators to commit to treating with confidentially payment issues raised by sub-contractors (no retaliation or impact to contractor).

  2. Contractors to raise to the Energy Chamber payment concerns confidentially (if all other options fail).

Theme 6: Forex: criteria for payments to be made in US$

Actions:

  1. Each Operator should have a defined criteria for payment in TT or US currency and communicate same at the bid/RFP stage.