HS2 supplier payment runs have been accelerated, as concerns mount about cash flow within the construction sector amid the Covid-19 crisis
In response to Covid-19, HS2 supplier payment runs have been accelerated to ensure that they are being made in a timely manner.
HS2 is accelerating payments to all companies directly in its supply chain, processing approved payments immediately when funds are available, rather than on the contracted payment terms.
Tier one contractors in the HS2 supply chain are being urged to mirror this and have the duty to ensure the approach is followed through all tiers of the supply chain.
HS2 has written to all its direct suppliers to ensure that faster payments are made to all companies in its supply chain in all tiers, mirroring HS2’s approach. This will provide reassurance to firms working on the project and should help ensure that stability remains within the HS2 supply chain.
At a time of economic concern due to the Covid-19 pandemic, it is hoped these measures will go some way to alleviate concerns about financial certainty for companies in, and aligned to, the construction sector.
Recovery of the UK economy
HS2 Ltd’s commercial and procurement director, David Poole, said: “As we emerge from the pandemic, HS2 will play a crucial role in the recovery of the UK economy and provide a much-needed boost to the construction industry and the many jobs that industry supports.
“By taking these steps to speed up supplier payments, and by requiring this to continue throughout the supply chain, businesses large or small within the whole HS2 supply chain can feel confident they will be supported by HS2 Ltd.”
Progress is being made on HS2, with construction activities ongoing and procurement activity on the project continuing.
Last week, HS2 launched the procurement of track contracts, and at the end of April began the search for stations lifts and escalators suppliers.
Despite some disruption to regular business practices because of Covid-19, HS2 has continued to engage with the business community, participating in online supply chain engagement events organised through industry bodies.