HS2 has accelerated its payment runs to suppliers to ensure that cash keeps flowing through the construction supply chain during the coronavirus pandemic.
Approved payments are being processed immediately “when funds are available”, rather than on the contracted payment terms.
HS2 has asked tier one contractors in the HS2 supply chain to mirror this and said they have a “duty” to ensure the approach is followed through all tiers of the supply chain.
HS2 has also written to all its direct suppliers requiring that faster payments are made to all companies in its supply chain in all tiers, in a bid to provide reassurance to firms working on the project.
An estimated 400,000 supply chain contract opportunities for UK businesses will be created during Phase One of HS2. It is estimated that around 95% of those contract opportunities will be won by UK-based businesses and around two thirds of those will be small and medium sized businesses.
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.”
