We have recently received communication from the Home Office which we are utilising to try to ensure long term positions are honoured.
The documents named ‘Guidance Note on Payments to Suppliers for Contingent Workers Impacted by COVID-19’ and ‘Procurement Policy Note – Supplier relief due to COVID-19’ highlight the importance of continuing the relationships between the public sector and existing suppliers to ensure the longevity of the supply chain to meet future demands (documents attached).
The current outbreak of COVID-19 is unprecedented and will have a significant impact on businesses of all sizes. Many suppliers to public bodies will struggle to meet their contractual obligations and this will put their financial viability, ability to retain staff and their supply chains at risk. Contracting authorities should act now to support suppliers at risk so they are better able to cope with the current crises and to resume normal service delivery and fulfil their contractual obligations when the outbreak is over. 7. It is vital that contracting authorities pay all suppliers as quickly as possible to maintain cash flow and protect jobs. Contracting authorities should also take action to continue to pay suppliers at risk due to COVID-19 on a continuity and retention basis. Contracting authorities can consider making advance payments to suppliers if necessary.
The public sector must act quickly and take immediate steps to pay all suppliers as a matter of urgency to support their survival over the coming months. Where goods and services are either reduced or paused temporarily, authorities should continue to pay at risk suppliers to ensure cash flow and supplier survival. This could include, for example situations where:
- Services are cut short / reduced at short notice due to the impact of COVID-19 and nonpayment could result in supply chains collapsing and/or significant financial implications for the supplier.
- It would be value for money and important to business continuity to continue to pay suppliers in the short term (regardless of whether you are able to reconcile at a later stage). This would ensure continuity of services when services can resume.