Procurement rules change as virus crisis worsens

The government is changing the way the public sector procures goods and services as the coronavirus situation worsens.

A policy procurement note, known as COVID-19, PPN 1/20, has been published to help local authorities get hold of urgently needed goods and services, and undertake vital works.

Under a series of changes being introduced immediately, the government will allow councils to award work directly “in cases of extreme urgency”.

Local authorities will have to keep detailed records of any shift in policy and keep “a written justification that satisfies [its] tests”.

Contracting authorities can also call off an existing framework agreement, and make changes to a contract during its term.

The government’s announcement prompted Pagabo to announce it will waive framework fees for any projects procured via its frameworks using the government’s procurement policy note.

This means clients of the firm, which is behind a £10bn major works framework that includes Kier, ISG and Sir Robert McAlpine, will only have to pay for the goods, services and works.

Jason Stapley, managing director at Pagabo, said: “We are really pleased to see that the government has taken steps to ensure that projects are still able to move through the procurement process quickly in order to get any urgent, critical work underway and keep the construction industry moving.”

Pagabo’s £10bn major works framework, which lasts for six years, is expected to start next month.