Covid-19 Supply Chain Update from Highways England 1st May 2020

Please find below the latest update from Malcolm Dare, Executive Director, Commercial and Procurement, Highways England.

Following last week’s Engagement Council I am writing to update you on Highways England’s ongoing approach to the C-19 challenges. Our direction and guiding principles have not changed and we are continuing to operate as close to business as usual as possible so that we continue to keep the Strategic Road Network (SRN) operating to support the country, the economy and to flow cash to all tiers of the supply chain.

I would like to highlight the following areas:

  • Supplier Payment Performance: Prior to the start of C-19 Highways England were paying 74% of all correct invoices for work completed into suppliers bank accounts within 5 days. During w/c 13 04 and 20 04 2020 this has increased to 94.3% and 97.5% respectively and we are looking to sustain this level of performance. During April we will have also paid a total of £490m to suppliers in order to support supply chain cashflow, this is above the normal monthly levels. Please can you ensure that you also do the same so that cash flows to all tiers of the supply base.

  • Ongoing Activity: In order to demonstrate that we have been working as business as usual I would like to highlight the following activities that have taken place over the last 2 – 4 weeks. The Smart Motorways Alliance contract (£4.5bn) has been awarded, the A66 design contract (£35m) has entered the standstill period, the Stopped Vehicle Detection OJEU (£32m) has been released, the PIN for the Operations Scheme Delivery Framework (£3.6bn) has been released and the A303 ITPD has been released today. These are all significant activities that support the SRN in the short to long term and they have not stopped due to C-19.

  • C-19 Testing for Construction Workers: I am sure that you are aware that C-19 testing is now available for construction workers and these test can be booked on line. Should your employees need a test please encourage them to book.

  • Highways England Chairman: The Highways England Chairman, Colin Matthews, comes to the end of his second term today. The Board will ensure the continued good governance of the company and we expect a new Chair to be announced in the near future. Colin’s leadership was fundamental to the creation of Highways England back in 2015 and he leaves us ready and energised for the next 5 years. I hope you will join me in thanking Colin for his leading role in the evolution of Highways England into the strong organisation we have today.

Kindest Regards,

Malcolm Dare,

Executive Director, Commercial and Procurement,

Highways England.

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