Procurement Policy Note 04/18: Taking account of a supplier’s approach to payment in the procurement of major contracts · first published 29 November 2018
PPN 04/18 set out how central government buyers should take account of a supplier's payment practices when awarding major contracts. It applied to all central government departments, their executive agencies, and non-departmental public bodies (NDPBs) for procurements above £5 million per annum advertised on or after 1 September 2019. However, this document was replaced by PPN 04/19 in July 2019 and is now out of date. Small businesses should look to PPN 04/19 for the current, live rules on this topic.
WHO THIS APPLIES TO
THE ENKII VIEW
Because this PPN has been superseded by PPN 04/19, there is no current action SMEs need to take based on this specific document. The replacement note (PPN 04/19) is where the live obligations and opportunities sit — SMEs bidding on large central government contracts should review that instead. Referencing or preparing for PPN 04/18 in a bid would be working from outdated policy.
1. Discard PPN 04/18 from your reference materials and look up PPN 04/19, which is the current live policy on supplier payment approaches in major government contracts.
All suppliers researching payment policy requirements — This document was explicitly replaced by PPN 04/19 in July 2019 and is stated to be out of date.
Every rule below quotes the official document verbatim.
This PPN applies to all central government departments, their executive agencies, and non-departmental public bodies (NDPBs). (Central government departments, executive agencies, and NDPBs.)
“This note applies to all Central Government Departments, their Executive Agencies and Non Departmental Public Bodies.”
The provisions must be applied to all procurements above £5 million per annum. (Contracts above £5m per annum, central government.)
“In-Scope Organisations must take action to apply the provisions of this Procurement Policy on all procurements above £5m per annum”
The policy applied to procurements advertised on or after 1 September 2019. (Central government procurements above £5m per annum.)
“advertised on or after 1 September 2019”
This document is out of date and was replaced by PPN 04/19 in July 2019. (All users of PPN 04/18.)
“This is guidance is out of date and was replaced by PPN 04/19 in July 2019.”
This briefing is enkii's interpretation of the official document — the official text always governs.
Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.