Commercial activity policy note

This policy note covers options that may be considered in relation to procurements under the Public Contract Regulations 2015 and also in principle the options that may be considered for Natural Resources Wales’ wider commercial activities.

Procurement contracts

Covered by the Public Contract Regulations (PCR) 2015.

Welsh Government have adopted a series of Cabinet Office Procurement Policy Notes (PPN) which contracting authorities can consider in response to Covid-19:

Procurement Policy Note 2/20: Supplier relief due to Covid-19

This helps us provide support to our suppliers and ensure service continuity during and after the current coronavirus outbreak.

We will consider options on a case by case basis but will seek to adopt the most risk-free option in the first instance.

To apply for this support please contact procurement.enquiries@cyfoethnaturiolcymru.gov.uk.

We will be able to offer support using the following methods:

  1. Prompt payment
  2. Increasing the frequency of invoicing

Recovery and Transition from COVID-19 procurement advice note

This is for people who have benefited from the supplier relief provisions contained in PPN 02/20 ‘Supplier relief due to COVID-19’.

The advice note is based on the UK government’s Procurement Policy Note 04/20 to ensure service continuity during and after the COVID-19 outbreak, but has been tailored for Wales as appropriate.

Read the recovery and transition from COVID-19 procurement advice note.

Procurement Policy Note 1/20: Responding to COVID-19

This provides us with options to vary an existing agreement by way of contract modifications and is contained.

Variations must be compliant with the PCR2015 and specifically included within Modifications to Contracts (Regulation 72, PCR 2015). We will consider options to either extend, vary, suspend or terminate a contract on a case by case basis.

Read the latest procurement policy notes from the Cabinet Office

Additional support for available

In some circumstances we may be able to offer further support using the following methods:

  1. Payment on order
  2. Advance payment

Where goods and services are either reduced or paused temporarily, we may continue to pay ‘at risk’ suppliers to ensure cash flow and supplier survival. This could include, for example situations where:

  • Services are cut short / reduced at short notice due to the impact of COVID-19 and non-payment could result in supply chains collapsing and/or significant financial implications for the supplier.
  • It would be value for money and important to business continuity to continue to pay suppliers in the short term (regardless of whether you are able to reconcile at a later stage). This would ensure continuity of services when services can resume.

To qualify, suppliers should agree to act on an open book basis and make cost data available to the contracting authority during this period. They should continue to pay employees and flow down funding to their subcontractors.

The supplier must prepare and deliver to us in writing, an interim payment proposal which sets out details of the supplier’s proposals to vary the payment profile and/or other terms of the Contract to support its cash flow position during the Covid Relief Period, including details of any proposed interim payment structure to be put in place, which may include (but not be limited to):

  • advance payment or advance interim payment for (goods) or (services)
  • prior to their delivery by the Supplier
  • proposals to amend contract milestone delivery and payment profiles (including extending, delaying, cancelling or consolidating milestone activity and payments)
  • continued payment notwithstanding reduced or non-performance
  • bringing forward Authority orders and associate payments

Assistance with paying rent for commercial leaseholds

We encourage all our leaseholders to consider the potential impacts of COVID-19, including their ability to make rent and other payments.

Check the most recent advice on the package of measures being introduced by Welsh Government for businesses which includes information on all COVID-19 related business support available from both the UK and Welsh governments.

Rent relief for our leaseholders will be dealt with on a case by case basis to ensure that leaseholders are fairly treated and where possible are appropriately supported during such extenuating circumstances. If an application for assistance is received and where business hardship is evident then we would assess each case on its merits, including:

  • if you pay in arrears or in advance
  • if you have insurance in place
  • terms of the lease and circumstances
  • whether there is beneficial occupation i.e. have we removed or severely restricted access to the premises through closure of sites
  • previous payment history

Email us at enquiries@cyfoethnaturiolcymru.gov.uk to discuss any emerging risks affecting payment terms us.