Wednesday 20th May, 2020
In response to the Covid-19 pandemic, and concerns about the impact on the cash flow within the construction industry, HS2 supplier payment runs have been accelerated to ensure that they are being made in a timely manner.
HS2, responsible for developing the UK's new high speed railway network is accelerating payments to all companies directly in its supply chain, processing approved payments immediately when funds are available. Tier One contractors in the HS2 supply chain are to mirror this and have the duty to ensure the approach is followed through all tiers of the supply chain.
According to a news item, HS2 has written to all its direct suppliers requiring that faster payments are made to all companies in its supply chain in all tiers reflecting 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.
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.”
An estimated 400,000 supply chain contract opportunities for UK businesses will be created during Phase One of HS2, supporting thousands of jobs on site and many more around the country. 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.