Leading procurement organisation NEPO has announced the inclusion of early payment facilitation clauses in two newly launched construction frameworks, NEPO212 Support Services for developing the Built Environment and NEPO233 Retrofit & Decarbonisation.
By offering contracting authorities the opportunity to include early payment programmes from Oxygen Finance in their procurement activities, local authorities across the UK will be able to offer construction suppliers improved cash flow and efficiencies.
The inclusion is part of a wider initiative by NEPO to embed early payment options into its procurement activities, helping suppliers access payment sooner and reducing the impact of late payment on their businesses.
Libby Daniels, Client Services Director at Oxygen Finance, said: “At Oxygen, we believe that early payment should be the norm, not the exception, and it’s fantastic to see NEPO leading the way in this space. This collaboration represents a huge opportunity for suppliers and local authorities alike, and we’re delighted to be a part of it.”
As part of the wider push towards greater transparency and fairness in procurement, NEPO’s collaboration with Oxygen Finance represents a major step forward in the industry, making early payment a standard part of the procurement process.
Joanne Leask, procurement manager at NEPO, commented: “Our partnership with Oxygen Finance aims to help buyers accelerate payments to their suppliers, creating efficiencies for both parties.
“NEPO wants to go further and integrate early payment provision within its procurement activities, so that the benefits of early payment programmes can be fully realised. We talked to suppliers at market consultation events to explain the benefits of the approach, this was positively received, and we are delighted that our two newly launched construction frameworks offer this choice for our members,” Leask added.
With the Procurement Bill set to introduce stronger measures around faster payment within the public sector, and the ongoing impact of the rising cost of living, early payment initiatives such as this offer a solution for suppliers and buyers to unlock efficiencies and improve cash flow.
Local Authorities can find out more about NEPO521 Early Payment Service here.