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New Government Procurement Policy Note - 23/03/2020

If you are contracted by local authorities or other public bodies then this is an important update.

The government has issued a new policy note to public bodies that commission services. This sets out guidance for all public bodies on payment of suppliers to ensure service continuity during/after COVID-19.

https://www.gov.uk/government/publications/procurement-policy-note-0220-supplier-relief-due-to-covid-19

In summary it lays out what contractors should do

  1. Inform at risk suppliers that they will be paid as normal even if service delivery is disrupted or suspended at least until end of June.
  2. Put in place payment measures to support supplier cash flow - could include forward ordering, payment in advance, interim payments etc...
  3. If payment by results then pay on basis of previous invoices e.g. average monthly payment.
  4. To qualify, suppliers should agree to act on open book basis and make cost data available to the authority. They should continue to pay employees and flow down funding to subcontracted organisations.
  5. Pay invoices immediately on receipt to maintain cashflow.

Dated 23/3/2020