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“PPN” stands for Procurement Policy Note. They’re updates that the Government release which advise the country on changes to procurement rules. They’ve been happening more regularly now that we’ve left the EU. As part of SECs commitment to our network we’ll be updating you on each relevant PPN.

What’s important about PPN 08/21?

The PPN was published in October and advises clients that they must now begin taking into account a bidder’s approach to payment in the procurement of major public contracts.

In making this change Cabinet Office are recognising the importance of prompt payment across the whole supply chain. And ensuring all businesses have a healthy cash flow throughout the contracts lifetime.

The PPN includes indicative questions which clients should be asking during the SQ stage to ensure payment processes and terms are taken into account.

You can read the PPN in full here – Procurement Policy Note 08/21.  

Who does it apply to? 

PPN 08/21 applies to all contacting authorities across the public sector – this does not include devolved functions of Wales, Scotland and Northern Ireland, and NHS Trusts.

It applies to all contracts for goods, services or works with an anticipated contract value of over £5m per annum.

When does it apply from? – 1 April 2022.

At SEC we’ll be updating our process to reflect the policy change as the PPN also applies to framework agreements and dynamic purchasing systems. Our processes are up to date and we’ll always provide a compliant route.

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