HS2 is speeding up cash flow to all contractors by processing approved payments as soon as funds are available rather than on contracted terms.
HS2 supports the construction industry through faster payments to all tiers of its supply chain
It has also written to all of its Tier 1 contractors requiring faster payments are mirrored through all tiers of the supply chain during the pandemic. HS2’s Commercial and Procurement Director, David Poole, said he aimed to provide reassurance to firms working on the project and ensure that stability remains within the HS2 supply chain. 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.” HS2 contractors now have the go-ahead to start building provided they can maintain Public Health England (PHE) and industry guidelines. Over the course of phase one, an estimated 400,000 supply chain contract opportunities will be created for UK businesses. 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 as a result of the pandemic, HS2 has continued to engage with the business community, participating in online supply chain engagement events organised through industry bodies.
Originally published on: https://www.constructionenquirer.com/2020/05/14/hs2-orders-tier-1s-to-speed-up-payments/