PROJECT BANK ACCOUNTS FOCUS


Forging stronger links


By Professor Rudi Klein SEC Group CEO and Barrister


A


By Len Bunton FRICS FCIArb, HON FRIAS


SEC Group Scotland 38 CABLEtalk OCTOBER/NOVEMBER 2020


lmost four years ago, the Scottish Government mandated the use of project bank accounts (PBAs) for all public bodies


in receipt of government funding, and also advised other bodies such as local authorities to follow suit. When launching the policy, the


Scottish Government was adamant that all sub-contractors and sub- sub-contractors must benefi t from the use of PBAs.


All sub-contractors had to be paid through a PBA if the value of their works was at least 1% of the value of the main contract works. Where sub-contractors were excluded, they were still able to request that their payments were made through the


As a leading member of SEC Group Scotland, SELECT had long campaigned for the introduction of project bank accounts (PBAs). Now they’re up and running, two industry experts explain how the Scottish Government is increasing its eff orts to ensure they benefi t every fi rm in the supply chain


PBA. This new policy applied to all building projects more than £4 million but last year this was reduced to £2 million.


Benefi ts for sub-contractors PBAs off er sub-contractors two major benefi ts. The fi rst is faster and regular payments. PBAs avoid the need for payments to cascade down through


ADVICE ONLINE


Rudi and Len delivered a webinar about PBAs on behalf of the CICV Forum on 15 September. To watch it again, please go to bit.ly/PBA- webinar and download the presentation at cicvforum.co.uk/ useful-links


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