Mar 24

Government Contracts during the Coronavirus outbreak

The government have reiterated their support to suppliers in their own supply chain to ensure they are getting paid in the current climate.

The Cabinet Office has issued Action Note PPN 02/20 – Supplier Relief due to COVID -19. This states that public bodies will be able to use a range of measures to help support their suppliers.

This could include forward ordering, payment in advance, payment on ordering as opposed to on receipt, even if delivery or service may be disrupted.

In order for the supplier to receive this support, they must use an open-book approach to share some of the financial information needed to make this assessment and must ensure that the funds’ flow is appropriately used to pay employees and subcontractors.

These measures, whilst not exhaustive, are proposed for the period to the end of June and possibly further.

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