Latest guidance on payment to suppliers – PPN04/20

PNN 04/20 has recently been released by the Government. Titled “Recovery and Transition from COVID-19”, the document offers guidance to public authorities about further payments and service arrangements designed under earlier PPN notices to enable companies providing services to public authorities to continue to be paid at lease some of their normal contract payments.

PPN 04/20, as you might expect, begins the process of unwinding commitments that may have been entered into under earlier PPN notices. The key actions noted in PNN04/20 are:

  • Review their contract portfolio, including where they are providing any contractual relief due to COVID-19 and, if appropriate to maintain delivery of critical services, continue or commence measures in line with PPN 02/20
  • Work in partnership with their suppliers and develop transition plans to¬† exit from any relief as soon as reasonably possible. This should include agreeing contract variations if operational requirements have changed significantly.
  • Work in partnership with their suppliers, openly and pragmatically, during this transition to ensure contracts are still relevant and sustainable and deliver value for money over the medium to long term
  • Continue to pay suppliers as quickly as possible, on receipt of invoices or in accordance with pre-agreed milestone dates, to maintain cash flow and protect jobs.

You can find the full PPN 04/20 here