the diff erent layers of contracting. Instead, everybody is paid simultaneously from the same ‘pot’ within 12-15 days. The second benefi t is that sub- contractors’ monies are ring-fenced, so once they’re in the PBA they’re protected in the event of the main contractor’s insolvency. Monies are held in trust which means that they can’t be raided by the main contractor’s insolvency practitioner. The monies in the PBA are held by the client and main contractor as joint account holders on behalf of the benefi ciary sub- contractors.
Problems with PBAs To date, the experiences of sub- contractors on PBA projects have been very positive. After Carillion collapsed in January 2018, Highways England, the largest user of PBAs down south, reported that sub- contractors on their projects had not lost any money.
MORE ABOUT PBAs
PBAs aren’t complicated and shouldn’t be feared – they merely off er certainty of payment timing and give you protection in the event of a contractor’s insolvency. To read more about the process,
please visit the Useful Links section of the CICV Forum website at
www.cicvforum.co.uk where you’ll fi nd a dedicated section on PBAs. Among the material is a link to
a particularly helpful S cottish Government publication, Implementation of Project Bank Accounts – you won’t fi nd clearer guidance anywhere.
But not all has been plain sailing. Some sub-contractors, while enthusiastic about PBAs, have reported that they don’t receive information about whether a PBA has been set up on their projects. Others
are aware but for one reason or another have not been included within the PBA arrangements. Main contractors have often given
the excuse that some or all of their sub-contractors don’t wish to be a part of the PBA. Even where they are benefi ciaries of the PBA, fi rms are not always made aware when their payments have been deposited in it.
Tightening the rules The Scottish Government is keen to ensure that the PBA ‘net’ in Scotland is cast as widely as possible to include more small fi rms, and in August it issued updated guidance for the public sector.
This means that where PBAs are implemented, they must be available to and accessible by all sub- contractors and sub-sub-contractors. All commissioning bodies, i.e. public sector construction procurers, must maintain a record of the PBA status
Continued on page 40 >>> CABLEtalk OCTOBER/NOVEMBER 2020 39
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48
