In its previous public procurement guidance, the UK Cabinet Office told public authorities to keep paying “at risk” contractors if projects had been stopped by the coronavirus lockdown, to keep cash flowing in the supply chain. It now concedes that public authorities may be forced to start cancelling contracts as all parts of the economy attempt to deal with the fallout of the coronavirus crisis. The latest guidance notice said: “It may be necessary for the parties to discuss contract termination. If a contracting authority views a contract as no longer relevant or viable, they should work with the supplier to pursue termination based on the existing contractual remedies. Read more here.
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