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Increased payment frequency to local contractors

The Wairoa District Council will increase payment frequency to local contractors in a bid to assist with their cashflow as the country moves into Alert Level 3.

Currently, Council pays its contractors on a monthly cycle. For most of Council’s suppliers, who continue to have regular monthly billing, this is business as usual and there will be no change. However, there are several contractors that Council engages periodically for short-term contracts which could benefit from the two-weekly cycle.

Wairoa Mayor Craig Little said he was approached with a two-weekly cycle suggestion by former councillor and local tradesman Min Johansen.

“While the Council has always acted in good faith with its suppliers, I think formally moving to a two-weekly payment system is ideal. I am sure it will help with cashflow for contractors, which in turn will help them to be able to pay their employees, and so the cycle goes.”

Mr Little advised that contractors could play a part in keeping the process efficient by ensuring they have a contract or purchase order from the Council before commencing work, and by submitting their contract claims or invoices well ahead of the payment date.

“Anything Council can do to ease the financial burden and get more dollars moving around our community has got to be good for our district.”

To inquire about two weekly invoicing email accounts.payable@wairoadc.govt.nz

28 April 2020

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