PPN08/21 -bidders approach to payment - applies from April 2022

The Cabinet Office has issued an updated PPN on “Taking account of a bidder’s approach to payment in the procurement of major contracts”.  This PPN 08/21 replaces PPN 07/20. The key update to PPN 07/20 is the increase to the threshold bidders have to meet to demonstrate they have effective payment systems in place to ensure the reliability of their supply chains. The standard questions are to be included in Selection Questionnaires (SQ).

The updated PPN applies to Central Government Departments (and their Executive Agencies and Non Departmental Public Bodies). when procuring goods, services and/or works with an anticipated contract value above £5 million per annum (excluding VAT) which are subject to the Public Contracts Regulations 2015 (save where, in exceptional circumstances, it would not be relevant or proportionate to do so). The new PPN 08/21 applies to procurements advertised on or after 1 April 2022. Relevant contracting authorities should continue to apply PPN 07/20 to all relevant procurements before that date