FOCUS INDUSTRY UPDATE
of more than £2 million, although procurers are free to introduce PBAs as they consider appropriate. It really is welcome news for the industry and the SEC Group deserves great credit for their enthusiastic work in persuading the Scottish Government to reduce the threshold and to implement PBAs. To you contractors out there, it will mean that you will be paid at the same point in time as the contractors receive payment from the employer. Further advice on PBAs can be found from Alan Wilson, Managing Director of SELECT, on the SELECT website, along with some other interesting reading material.
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completion in every sense of the word and I think the whole industry needs to tighten up on this process. I think we will see the appearance of quality management on sites and this will mean there is as much attention to quality as the industry gives to health and safety.
Ending retention
I had the opportunity to present a paper on the old chestnut of retention. The whole industry wants to see retention abolished. There are billions of pounds tied up in retentions across the UK. At present, we do not have any factual information on the value of retentions held by employers in Scotland, and it would be not too difficult to try to establish these figures. If the industry wants to see retention abolished then they have to have to give the employer something back in return, and that is why I emphasised the need for greater quality management during the construction process. Most SMEs I deal with want to have a reputation as a competent and efficient contractor, and in my view that is a healthy recipe to build long-term relationships with procurers of construction projects. This is not a matter that the Scottish Government can address – it is down to the industry to produce a better product. The Scottish
“If the industry wants retention abolished then they have to give the employer something back in return”
Government has commissioned a consultation into retention which I think, quite frankly, is just kicking the can down the road. We need a collective drive with the industry bodies and employers to come up with a game plan to produce quality buildings such that retention can be abolished safely.
Project Bank Accounts There was also a very interesting presentation on Project Bank Accounts (PBAs), which have been introduced by the Scottish Government for public sector projects with the tender value
40 CABLEtalk DECEMBER 2019/JANUARY 2020
Ready for change We also had a presentation on Integrated Project Insurance, which is a collaborative form of procurement involving the employer, the design team and the contractor from the outset. The project development benefits from the know-how and knowledge of those involved and I believe that this method of procurement will gradually gain traction in industry.
The conference closed with a question- and-answer session involving all speakers and we had some interesting topics to discuss. It is encouraging to see that there are changes happening in the Scottish Construction Industry and these will need buy-in from all sectors and organisations involved. There is no doubt that SELECT is heavily involved in these processes and looking to bring benefit to their members.
PAYMENT PLEDGE
Finally, something I have written about and a badly needed process – Conflict Avoidance Processes (CAP). Can I ask readers to go to the RICS Conflict Avoidance Pledge webpage and sign up to promote fair play on payment and early intervention into construction problems. Visit
www.rics.org/capledge to find out more.
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