Procurement Policy Note 07/20 - Taking account of a bidder's approach to payment in the procurement of major government contracts · first published 29 October 2020
PPN 07/20 set out how central government buyers must consider a bidder's approach to payment (e.g. how quickly they pay their supply chain) when awarding major contracts. It applied to central government departments, executive agencies, and non-departmental public bodies (NDPBs) on procurements worth over £5 million per annum, advertised on or after 1 April 2021. However, this PPN has now been fully superseded and replaced by PPN 08/21, which covers the same subject. Small businesses should look at PPN 08/21 instead — this document is no longer the live rule.
WHO THIS APPLIES TO
THE ENKII VIEW
Because this PPN is superseded, acting on it directly would be a mistake. The payment-practices evaluation mechanism it introduced does still matter to SMEs — prompt payment up the supply chain protects small subcontractors — but the current rules are in PPN 08/21. SMEs should treat this document as historical context only and review PPN 08/21 for the obligations that actually apply today.
1. Stop referencing PPN 07/20 in bids or compliance documentation — switch immediately to PPN 08/21 as the live rule on payment practices.
All suppliers previously relying on PPN 07/20 — PPN 07/20 and its guidance have been explicitly replaced by PPN 08/21 and are stated to be out of date.
2. Read PPN 08/21 to understand the current payment-practice evaluation criteria that buyers must apply — your payment record and supply-chain payment terms will be assessed at bid stage.
SMEs bidding on central government contracts above £5m per annum — The payment-approach evaluation mechanism originated in this PPN but is now governed by PPN 08/21; the requirement still exists and affects bid scores.
Every rule below quotes the official document verbatim.
The PPN applies to all central government departments, their executive agencies and non-departmental public bodies. (Central government departments, executive agencies and NDPBs.)
“This note applies to all central government departments, their executive agencies and non departmental public bodies.”
In-scope organisations must apply this PPN on all procurements above £5 million per annum. (Central government departments, executive agencies and NDPBs, contracts above £5m per annum.)
“In-scope organisations must take action to apply the provisions of this Procurement Policy on all procurements above £5m per annum”
The obligations under this PPN apply to procurements advertised on or after 1 April 2021. (Central government departments, executive agencies and NDPBs.)
“advertised on or after 1 April 2021”
PPN 07/20 updated and eventually replaced PPN 04/19, which stayed in effect until 1 April 2021. (Central government departments, executive agencies and NDPBs.)
“This updates PPN 04/19 , which stays in effect until that date.”
PPN 07/20 has been fully replaced by PPN 08/21 and its guidance is out of date. (All previously in-scope organisations.)
“This Procurement Policy Note (PPN) and guidance have been replaced by PPN 08/21: Taking account of a bidder's approach to payment in the procurement of major government contracts”
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.