Monday, April 27, 2020

News: Rotherham Council changes procurement payments to support suppliers


Rotherham Council is taking measures to accelerate payments and support to suppliers.

The move comes after Government guidance was issued to contracting authorities saying that they must act now to ensure suppliers at risk are in a position to resume normal contract delivery once the Coronovirus outbreak is over.

Measures to accelerate payment to suppliers include making immediate payment to all suppliers on receipt of goods, encouraging discussions with suppliers over an increased frequency of invoicing and reviewing contracts to identify at risk suppliers.

Rotherham Council said that the measures respond to the COVID-19 pandemic and the need to support suppliers during the period of restrictions.


Government guidance explains: "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.

"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 authority is also funnelling Government grants to businesses. More than 2,700 Rotherham businesses have received Covid-19 financial support worth over £30m in the last few weeks.

Images: RMBC


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