At CIPS we act for public and private sector clients and contractor clients alike. Indeed, we consider that it is this exposure to all sides of the industry that allows us to take a balanced and informed view when we are advising our Clients.
With the introduction over the last two weeks of new and instructive work practises to safeguard the health of those in the industry who are still required to be on site, there are growing calls to address another other critical issue to the health of our industry - Cash Flow.
A number of organisations have already taken steps to support supply chains through the collaborative administration of contracts. Government has led the way through the implementation of PN 02/20, under which public-sector clients will continue to pay suppliers at risk due to Covid19 until at least the end of June 2020. See the Guide to PPN 02 20 Supplier Relief due to Covid 19 published by the Cabinet Office.
PN 02/20 will assist those involved in public-sector projects. At CIPS we are talking to a number of private-sector clients about safeguarding long-lead items requiring pro-forma or advanced payments in uncertain times when factories are on hold and delivery dates are unpredictable. We are coming up with imaginative solutions that share the burden of risk rather than to try and off-load it all in one direction.
We all owe it to our sector to take prudent and responsible steps to ensure that the industry is in good health to support the recovery, when it comes. To that end it is vital to keep money moving in the sector and beholden on all parties to play their part by maintaining payment and by managing contracts responsibly.