--- title: Water sector suppliers call for greater support amid COVID-19 pandemic description: Suppliers and contractors need more support from water utilities, one New South Wales water business director says, as the loss of buyer momentum caused by COVID-19 threatens the financial health of t --- [![Indigo by AWA logo](https://www.awa.asn.au/hs-fs/hubfs/AWA-Website/Logos/Indigo_colour.png?height=24&name=Indigo_colour.png)](https://indigo.awa.asn.au/) [![Ozwater logo](https://www.awa.asn.au/hs-fs/hubfs/AWA-Website/Logos/Ozwater.png?height=24&name=Ozwater.png)](https://www.ozwater.org/) [![Careers in Water logo](https://www.awa.asn.au/hs-fs/hubfs/AWA-Website/Logos/Careers%20in%20Water_colour.png?height=24&name=Careers%20in%20Water_colour.png)](https://www.careersinwater.com.au/) [![NWW logo](https://www.awa.asn.au/hs-fs/hubfs/AWA-Website/Logos/NWW.png?height=24&name=NWW.png)](https://www.nationalwaterweek.org/) - [Join ![user icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-nav-user-icon.svg "user icon")](https://www.awa.asn.au/new-registration) - 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It’s really disappointing. “With a push towards outsourcing over the last decade, the supply chain is absolutely fundamental to their business – every utility is the same.” More of a concerted effort to communicate the impacts of COVID-19 to suppliers is needed, Dahl said, as well as payment policy revision to ensure all businesses get paid on time.  “No one's expecting all of the answers, but some form of insight into planning would be reassuring,” he said. “I understand there was a broader [directive from the Victorian State Government](https://global.vic.gov.au/whatson/2020/april-2020/responding-to-coronavirus-covid19/summary-of-government-assistance-to-businesses-accessible) to utilities to reduce payment terms to five business days. I think that's a great initiative.  “We just had an invoice paid by a large water utility this week, thankfully. To get paid hundreds of thousands of dollars eight weeks after you submit the invoice is bad for business. “Lost momentum and a slow recovery is an unacceptable position for an industry that provides essential services. There will be very important businesses in the water sector which won’t survive that approach.” With the ongoing drought still at the forefront of industry thinking, Dahl said he would like to see a long list of [water security projects](https://ozwater.org/Watersource/business/assets-and-operations/nsw-dam-projects-covid-19/) fast tracked to provide much needed resilience and broad economic activity. “Now is the time to get these projects shovel-ready,” he said. Australian Water Association CEO Jonathan McKeown said it was very important that the concerns of the association's small- and medium-sized members were taken seriously and acted upon promptly. "Many of our members have been very badly impacted by COVID-19 and the association is asking all its utility members and large corporate members to extend special consideration to the following," McKeown said. "First, to shorten payment terms to 7 days for suppliers to help them through this difficult cashflow period. "Second, to fast track any existing projects that have approved capital expenditure to maximise the business opportunities and employment for suppliers. "And third, communicate with your suppliers to ensure you have a clear understanding of their concerns to make sure we do not suffer unnecessary reductions in the number of suppliers in the supply chain, which is so crucial for the Australian water sector.” McKeown is also calling for a special national code of conduct for procurement to set out equitable terms of engagement, remuneration of those in the procurement chain, and a fair and reasonable allocation of risk between the parties. "Without such a code of conduct relating to procurement, many small- and medium-sized suppliers simply will not participate in procurement processes, which would restrict the amount of innovation that’s coming through our SMEs in the supply chain," he said. ## Digital-focused utilities better prepared GHD Principal Rod Naylor said digital capability has been a notable issue for some water authorities and utilities, with more digitally mature organisations better able to maintain momentum.  “The water industry is fairing very well compared to other industries, but [the pandemic] has caused some distractions and delays – we've seen this from a supply-chain perspective,” he said.  “Depending on the digital maturity of the authority, there's been quite a marked difference. GHD moved 10,000 people [to remote working] in two weeks and discovered several large clients were ready for us when we started work again, but others just had no capability at all.” Given Australia’s strong position against the COVID-19 pandemic, Naylor said now is the time to address capability issues to ensure greater resilience in future.  “There is a lesson here, in terms of future resilience, in terms of both digital readiness and coordination with local supply chains,” he said.  “Some organisations need to be more digitally agile. This is an opportunity for learning, introspection and preparation, particularly around resiliency and incidents.” ## For some, it's business as usual While the coronavirus has had an impact on some water organisations, others have managed to navigate the disruption, pointing to the potential of knowledge sharing post-crisis.  SA Water General Manager of Customers, Strategy and Innovation Anna Jackson said the utility had managed to [continue with scheduled works](https://ozwater.org/Watersource/technology/innovation/utility-repurposes-oil-refinery-site-for-solar/) as planned.  “Water and wastewater services are essential to everyday life, and with the ongoing support of our supply chain partners, we’ve been continuing to maintain reliable services while our wider community implements measures to contain the spread of COVID-19,” she said.  “Our full program of works continues at pace, to ensure initiatives that will improve our services are progressing and to support the local supply chain. “SA Water’s supply chain is currently very healthy and at this time we don’t anticipate any significant issues materialising from the wider economic impacts of COVID-19.” [ SARS-COV-2 ](https://www.awa.asn.au/resources/latest-news/tag/sars-cov-2) [ coronavirus ](https://www.awa.asn.au/resources/latest-news/tag/coronavirus) [ partnerships ](https://www.awa.asn.au/resources/latest-news/tag/partnerships) [ Contractors ](https://www.awa.asn.au/resources/latest-news/tag/contractors) [ Suppliers ](https://www.awa.asn.au/resources/latest-news/tag/suppliers) [ COVID-19 ](https://www.awa.asn.au/resources/latest-news/tag/covid-19) [ Utilities ](https://www.awa.asn.au/resources/latest-news/tag/utilities) Share [![email icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-dark-sandstone-email.svg "email icon") ](mailto:?subject=Water%20sector%20suppliers%20call%20for%20greater%20support%20amid%20COVID-19%20pandemic&body=Check%20out%20https://www.awa.asn.au/resources/latest-news/business/partnerships/water-sector-suppliers-call-for-greater-support-amid-covid-19-pandemic) [![facebook-icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-dark-sandstone-facebook.svg "facebook icon") ](https://www.facebook.com/sharer/sharer.php?u=https://www.awa.asn.au/resources/latest-news/business/partnerships/water-sector-suppliers-call-for-greater-support-amid-covid-19-pandemic) [![LinkedIn icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-dark-sandstone-linkedin.svg "LinkedIn icon") ](https://www.linkedin.com/shareArticle?mini=true&url=https://www.awa.asn.au/resources/latest-news/business/partnerships/water-sector-suppliers-call-for-greater-support-amid-covid-19-pandemic) [![Twitter icon](https://www.awa.asn.au/hubfs/website-assets-2021/icons/icon-dark-sandstone-twitter.svg "Twitter icon") ](https://twitter.com/home?status=https://www.awa.asn.au/resources/latest-news/business/partnerships/water-sector-suppliers-call-for-greater-support-amid-covid-19-pandemic) ## RELATED NEWS ### [ Perth looks to water recycling to secure water supply ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/perth-looks-to-water-recycling-to-secure-water-supply) Water Source With Perth located in one of the driest regions of the driest continent on earth, water recycling has proven to be one of the most… [ Read Full Paper ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/perth-looks-to-water-recycling-to-secure-water-supply) [![Image: ARTC](https://www.awa.asn.au/hs-fs/hubfs/sa-outback-flood-damage.jpg?width=352&name=sa-outback-flood-damage.jpg) ](https://www.awa.asn.au/resources/latest-news/flood-damage-threatens-supply-chain-for-wa-water-quality) ### [ Flood damage threatens supply chain for WA water quality ](https://www.awa.asn.au/resources/latest-news/flood-damage-threatens-supply-chain-for-wa-water-quality) Cecilia Harris Flood damage to an outback rail line has severed the supply chain between Western Australia and the the rest of the country,… [ Read Full Paper ](https://www.awa.asn.au/resources/latest-news/flood-damage-threatens-supply-chain-for-wa-water-quality) [![](https://www.awa.asn.au/hs-fs/hubfs/Imported_Blog_Media/count.gif?width=352&name=count.gif) ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/what-risks-do-bushfires-pose-to-drinking-water-supply) ### [ What risks do bushfires pose to drinking water supply? ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/what-risks-do-bushfires-pose-to-drinking-water-supply) Stuart Khan Stuart Khan is Professor of Civil and Environmental Engineering at UNSW. This article was originally published on The Conversation.… [ Read Full Paper ](https://www.awa.asn.au/resources/latest-news/business/assets-and-operations/what-risks-do-bushfires-pose-to-drinking-water-supply) Advertising --- ### Subscribe to our newsletters Sign up to get the latest news and insights from us Advertising --- ![white arrow pointing upwards](https://www.awa.asn.au/hubfs/website-assets-2021/icons/awa-white-arrow-up.svg) Top [![Footer-logo-02](https://www.awa.asn.au/hubfs/Footer-logo-02.svg) ](https://www.awa.asn.au/) The **Australian Water Association** acknowledges the Traditional Custodians across Australia, where we live, work and play, for their deep connection to our precious waters and land. 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