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.
In summary it lays out what contractors should do
- 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.
- Put in place payment measures to support supplier cash flow - could include forward ordering, payment in advance, interim payments etc...
- If payment by results then pay on basis of previous invoices e.g. average monthly payment.
- 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.
- Pay invoices immediately on receipt to maintain cashflow.