USA: Military Bases
The question
To ask the Secretary of State for Defence, what are the repayment terms for construction and maintenance work carried out to bases used by US forces.
Answered by Luke Pollard
The Ministry of Defence (MOD) initially meets all costs for construction and maintenance work on United States Visiting Forces (USVF) projects. The timing of payments to contractors depends on the terms agreed in each contract. Once the MOD has paid the contractor invoices, it raises recharge invoices to the USVF. These recharge invoices must be settled within 60 days.
Additionally, the USVF provides a contribution equal to 7.5% of the actual construction costs towards MOD overheads. This contribution is also payable within 60 days, in line with the recharge terms for construction and maintenance expenditure.
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