Ian Fishwick – SME Director, Innopsis
The Cabinet Office SME Panel has long argued that if suppliers want to win Government contracts then they must agree to abide by the rules; with clear sanctions if you don’t.
We are delighted to announce that the Government has listened, and the Cabinet Office has issued new Procurement Policy Guidelines this week.
From April 2021, suppliers must pay at least 85% of invoices in 60 days to their supply chain and have an action plan setting out how they will achieve 95% in 60 days when bidding for Government contracts above £5m per annum. Performance less than this will be a fail.
A failure may mean that the supplier is suspended from winning any further Government contracts until their payment performance improves.
This is a great example of why it is always better to work with Government to help them understand the real problems that business face. Innopsis is proud to have played a small part in this.
Post expires at 10:40pm on Friday April 30th, 2021