How does a Public Body amend its contracts to enable continued payment to contractors?
The latest Cabinet Office guidance published Monday 6 April 2020 titled ‘Procurement Policy Note PPN 02/20: Additional guidance. FAQs and model terms for construction’ provides model deeds of variation for JCT and NEC3 contracts to provide for such payments to be made. As the Cabinet Office guidance states, legal advice is likely to be required to make sure that the model variations work with your specific contracts. Please contact one of our construction specialists if you need advice and assistance.
For a copy of the guidance note click here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/878338/PPN_02_20._Additional_guidance__FAQS_and_model_terms_for_construction.pdf
Related FAQs
It is almost impossible to completely guard against the risks associated with contractor insolvency, but there are some steps which can assist in mitigating and managing the risks involved. To be in the best possible position, it is worth considering the following at the outset of any project:
- Check the contractor’s financial position – particularly the specific company which will enter into the building contract, as the employer’s rights will be against this company rather than the business as a whole
- Take legal advice to ensure that the building contract is properly drafted with appropriate provisions to deal with an insolvency event
- Consider requiring a performance bond and/or parent company guarantee (each serve slightly different purposes)
- Obtain collateral warranties from the consultants and sub-contractors involved, so that there are contractual rights against other parties if the contractor is no longer able to meet claims
- Consider requiring retention bonds, advance payment bonds or vesting certificates if necessary
- Project bank accounts and escrow accounts can also provide some further assurances for the parties involved
We have teamed up with Scaleup North East to help companies impacted by the coronavirus outbreak plan how to get back to business.
Our specialist lawyers will provide a free “diagnostic” call with eligible businesses across the NE, exploring challenges they are facing in the aftermath of the lockdown, and identify specific steps to survive, and then thrive, in these challenging times and beyond.
Through the collaboration with Scaleup North East, eligible North East-based SMEs are then able to apply for up to 40% funding towards up to £4,000 of legal advice.
These might include:
- Employment issues, such as dealing with a phased return to work
- Measures to support cash-flow, such as amendment to terms of trading and debt collection procedures
- Renegotiations and amendments to contracts, and other advice about contracts with suppliers and customers to deal with consequences of Covid-19
- Managing property costs – review of leases, advice on break clauses and formalisation of any revised arrangements recently put in place with landlords/tenants
- Health and safety implications of return to work and social distancing
Find out more on our website or contact partner Damien Charlton. If you are not eligible because of location but are interested in the free “diagnostic”, please contact us.
There are two stages:
- Stage 1 – The provision of written information to the representatives.
- Stage 2 – Consultation on the proposed redundancies “with a view to reaching agreement” about certain matters
Stage 1: Provision of information
The first stage in the collective consultation process is to provide the representatives with written information including details of the proposed redundancies (often called a section 188 letter). This information must be given to the appropriate representatives and the time limit before dismissals can take effect does not start to run until they have received it. It is this information which ‘starts the clock’.
It is possible that there will be changes to the proposals during the consultation process: indeed that is part of the reason for the process. The employer’s obligation is not just to provide the appropriate representatives with the relevant information at the start of the process. It is under a continuing obligation to provide them with information in writing about any developments during the consultation process (although later changes do not ‘restart the clock’ before dismissals can take effect).
Stage 2: Consultation on the proposed redundancies “with a view to reaching agreement” about certain matters
The consultation process must include consultation “with a view to reaching agreement with the appropriate representatives” on ways of:
- Avoiding the dismissals
- Reducing the number of employees to be dismissed
- Mitigating the consequences of the dismissals
Yes, you should submit a new visa application before your current visa expires.
The visa application is a two stage process:
- First you submit the online application and pay the fee
- Second you attend a visa application centre to enrol your biometrics and verify your passport.
Submitting a valid online application before your current visa expires secures your right to continue living and working in the UK, even after your current visa has expired.
Visa application centres across the world have been closed due to covid19 but are now mostly re-open to enable you to book an appointment to complete your application, albeit some are experiencing a backlog of applications.
The CLC has also prepared a template letter that firms may adopt and issue to their workforce regarding travel to work. This can be accessed at download document.
The CLC’s current advice to those carrying out works on site is to carry out your own risk assessment on each site and determine whether or not it is safe to continue to work in accordance with the Public Health England instructions and the CLC Site Operating Procedures. If it is not possible to work in accordance with the above they should not work.