The Cabinet Office has published additional guidance and FAQs in support of Procurement Policy Note PPN 02/20.

These are:

Guidance notes on model interim payment terms

The purpose of the Model Interim Payments Terms (“Model Terms”), which are in a standard form letter, is to set out the terms that contracting authorities can use to implement PPN 02/20 in providing contractual relief to suppliers who have been affected by COVID-19. This includes preventing a supplier claiming separate relief from another source of Government financial support on COVID-19.

The Model Terms are designed for public contracts for the delivery of goods and services. Contracting authorities are recommended to seek legal advice to ensure that the Model Terms are consistent with the contract they seek to vary and/or if they wish to vary a works contract. The Guidance notes provide a brief explanation of how the Model Terms work.

The Guidance notes on Model Terms state that all contracting authorities should consider using the Model Terms.


Guidance notes on payments to suppliers for contingent workers impacted by COVID-19

The purpose of the Guidance notes on Contingent Workers (likely to include non-permanent employees such as contractors, freelancers, agency workers and consultants) is to provide measures that contracting authorities can use to implement with Contingent Workers who have been affected by COVID-19 and are unable to work as a result. There are 23 FAQs.[1]

The Guidance notes on Contingent Workers apply to all Central Government Departments, Executive Agencies and Non Department Public Bodies. Other contracting authorities are encouraged to apply the approach set out in the Guidance notes on Contingent Workers.


Frequently Asked Questions (FAQs) - Procurement Policy Note 02/20 (Dated 27 March 2020)

The FAQs document contains 17 FAQs regarding the scope and application of PPN 02/20 on supplier relief. These address a range of issues, including:

  • Does PPN 02/20 applies to grants? – the short answer is “no”
  • What is the definition of an “at risk” supplier? – this is at the discretion of the contracting authority
  • Should contracting authorities continue to pay suppliers where the contract does not have a volume commitment? – not normally

There is more detail in the FAQs in response to the above questions and 14 other questions.

The FAQs are relevant to any contracting authority in scope of PPN 01/20 and PPN 02/20.


Follow this link for our original article on PPN 02/20

Follow this link to PPN 02/20 and the supporting guidance notes and FAQs


For further support and advice relating to the impact of COVID-19, please view our COVID-19 Advisory Service page


[1] 23 FAQs at 01 April 2020.

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