Cashflow and additional hardship
Despite the above clarifications, the guidelines also recognise that there is still likely be significant financial consequences for Contractors from the Covid-19 restrictions, which stands to affect the industry and economy as a whole. To that end, they ask government agencies to consider:
a. Other mechanisms to improve cashflow and remobilisation. Specific suggestions include: forward ordering, payment in advance/prepayment, faster payment cycles, issuing purchase orders for costs incurred, interim payments, or for results-based contracts, basing payment values on previous months; and
b. Whether additional extra-contractual financial relief for individual Contractors is warranted and in the public interest. MBIE says it is developing processes for considering and approving requests for special relief.
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BuildLaw | Apr 2020
Glen Holm-Hansen
Senior Associate
Nick Gillies
Partner
Relevant links
ABOUT THE AUTHORS
Government guidelines contact: [email protected]
Hesketh Henry Covid-19 Webpage
Christina Bryant
Partner