So what is the correct approach for contracting authorities to adopt during these times, to navigate effectively the urgency of the situation alongside the legal duties on public sector organisations?
Despite being drafted in mandatory terms “Contracting authorities must act now”… the key point to note about this PPN is that it is simply guidance. It has no statutory force and it is not guidance to which contracting authorities must “have regard” (i.e. follow unless there is a good reason not to). Importantly, the PPN does not carry with it any promise of financial support from the government for contracting authorities that act in ways suggested by the PPN.
Nevertheless, contracting authorities are likely to want to play their part in ensuring business continuity of their key suppliers wherever this is possible, and it is appropriate to do so. The guidance note suggests providing additional support to suppliers, where appropriate, in areas such as paying invoices promptly, considering upfront payments and relaxing some of the performance requirements of particular contracts.
Contracting authorities should, of course, continue to act prudently. Many registered providers are charities and therefore under a duty to use their charitable funds only for proper charitable purposes. All registered providers and local authorities are required to obtain value for money for their expenditure.
There is a difference between paying promptly for work that has been delivered and paying in advance for work that might never be delivered. Before considering any “up-front” payment, a careful risk assessment needs to be undertaken to consider why upfront payments may be necessary, how they would be recouped from later payments and whether the obvious risks are outweighed by the need to ensure business continuity.
The encouragement in the PPN to consider contracts and work collaboratively with contractors during this difficult period is clearly good advice. Contracting authorities should first make sure that they thoroughly understand the terms of their contracts before engaging with their suppliers and identifying how best to work together through this period.
Another important factor will be how important it is to the contracting authority to ensure the contractor is able to resume delivery of the works and services after the end of the current crisis. If suppliers become insolvent as a result of covid-19, the contracting authority will have to meet the costs of procuring and mobilising a new contract. These costs (which could be substantial for a long contract) need to be considered against the costs of providing extra support for a limited period.
We are supporting numerous contracting authorities and service providers with this process at the moment. If we can assist you with this, please get in touch with either Andrew Lancaster or Andrew Millross.
We have submitted our response to the White Paper Consultation based on the discussion held at the “Planning for the Future - what does this mean for affordable housing” webinar we held on Fri 9 Oct
Anthony Collins Solicitors is pleased to have been ranked as a Band 1 firm once again.
Since March 2020, commercial property owners and occupiers across many sectors, whether housing associations, charities, care providers or local authorities, have been impacted by the rules regulating how they deal with their tenants and their landlords. It seems each week there is a change in policy, regulation or legislation, governing how they must respond.
A key element of the Bill is the establishment of a duty holder regime and requirement to maintain the ‘golden thread of information’ throughout the life cycle of high-risk residential buildings
We have been working with care homes to update their contracts and advise on the risks of charging the resident a regular “top-up” or additional fee where a resident is funded through NHS CHC
The parliamentary processes are complete and the Restriction of Public Exit Payments Regulations 2020 (“the Regulations”) which cap exit payments in the public sector at £95,000 will be in force from 4 November.
As the UK’s social housing sector recovers from the initial Covid-19 outbreak and lockdown, now is the time to focus on the challenges that may emerge next.
There is no universal approach to regenerating town centres. However, housing must be considered a key part of any regeneration project – providing well-needed new homes and economic growth.
Friday 16 October marks the 6th annual Wear Red Day in England, Wales and Scotland. Wear Red Day is the brainchild of the charity; Show Racism the Red Card (SRTRC). SRTRC aims to educate young people so they are equipped to recognise and challenge stereotypes, misconceptions and negative attitudes towards race.
Alongside the Building Safety Bill published in July 2020, the Fire Safety Bill is a key step in the Government’s strategy to improve building and fire safety in the wake of the Grenfell Tower tragedy
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