Scotland halves project bank account threshold

Aaron Morby 6 months ago
Share

The Scottish Government has paved the way for a dramatic increase in the use of project bank accounts by slashing the project value threshold in half.

From 19 March, public bodies must include a PBA in tender documents for public works building contracts worth £2m and over and civil engineering projects worth £5m upwards.

When project bank accounts were first made mandatory in Scotland back in October 2016 they were required on projects over £4m and civil engineering projects valued over £10m.

Under PBAs, payments are ring-fenced in one pot to protect them from main contractor insolvencies and payments can be made to all parties within 12-15 days.

Previous exemptions for main contractors carrying out 75% of the work in-house or by associated firms are no longer applicable.

The Specialist Engineering Contractors’ Group Scotland welcomed the move.

Its National Executive Officer Alan Wilson said: “We have been pressing Scottish Government for some time to reduce the threshold to £2m. 

“Clearly Scottish Government has been listening and industry SMEs will be the prime beneficiaries of this lowering of the threshold.”

The Scottish Government is also stepping up its efforts to encourage all bodies involved in public sector procurement to implement PBAs.

Latest news

Javid unveils £600m boost for five projects

Fresh infrastructure funding to unlock 50,000 homes in London, Bedfordshire and Essex
3 hours ago

VolkerWessels UK on track to top £1bn turnover

Group margin hits 3% as UK business enjoys record order book of £1.4bn
3 days ago

Lendlease unveils new construction boss

Company veteran Simon Gorski takes over from Neil Martin
3 days ago

Kier to start work on £50m new home for Durham council

Contractor promises major boost to local supply chain
3 days ago

Willmott Dixon to complete Pochin Stoke site

Replacement found for collapsed contractor on £37.5m scheme
3 days ago

Britain’s oldest building company strikes deal with creditors

R Durtnell agrees debt repayment plan with suppliers owed more than £8m
3 days ago

Worker jailed for tax dodging on major London sites

Self-employed Bournemouth builder sentenced to 30 months for evading £110,000 in tax
4 days ago

Bid race starts for £40m M1-A6 link road

Central Bedfordshire Council says project could start in March 2020
3 days ago

Castle Building Services bags £6m M&E package

Early appointment by Bowmer & Kirkland alllows plenty of pre-site start design time
3 days ago

Bright ideas from Balfour Beatty staff save £4m

"My Contribution" programme sees staff suggest 2,600 ways to improve efficiency
4 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

£120m plan to replace Liverpool flyover with tunnel

Plan lodged to demolish flyover and replace it with a dual-lane tunnel
4 days ago

B&K checks in with Manchester “Jenga” hotel

Work to start next month on 275-bed Piccadilly Station hotel
4 days ago

Radisson backs £5bn Kent theme park with hotel plan

Hotel giant takes stake in project as backers look to confirm construction start date
4 days ago

Super safe scaffold screen could slash site costs

System in use at Twickenham station site boosts safety and saves money
4 days ago

McMullen lands cladding package at King’s Cross

Specialist to deliver striking facade for main contractor BAM
4 days ago

Balfour results can help “restore confidence” in construction

Boss Leo Quinn says latest numbers show contractors can deliver
5 days ago

HS2 relaunches race for £300m tunnels fit-out

Latest plan for M&E and ventilation bid race to be detailed at London industry day next month
5 days ago

Midas Group struggles to raise margin above 0.25%

Regional builder rejigs operation to restore golden touch
5 days ago

Polish steel entrepreneur buys Builders Beams

Steelo swoops to save 45 jobs at fabricator
5 days ago

Spanish contractor seals £180m Aberdeen waste plant job

Acciona Infrastructure will deliver full turnkey package on Ness Energy Project
5 days ago

Kier and Interserve secure £100m NHS framework places

North East NHS Trust picks trio of firms for estate improvement programme
5 days ago

Workers given mental health monitors to wear

Spencer staff hit blue button on wristband when they are feeling anxious
5 days ago

Contractors advice wanted on £400m concrete road renewal deal

Highways England wants to talk to potential bidders about procuring resurfacing framework
5 days ago

Silvertown Tunnel award suspended after challenge by losing bidder

Transport for London forced to suspend summer contract confirmation after legal action
6 days ago

Colas UK targets growth after trading loss

Colas chief sets out business turnaround plan to double in size
6 days ago

Interserve fit-out boss joins Morgan Lovell

Matt Bray takes head of contracts role at Morgan Sindall office fit-out firm
6 days ago

Subcontractors wanted for £400m Dounreay decommissioning

Framework contractors to host suppliers day next month: Register now
6 days ago

Henry Boot buys social housing contractor

Sheffield developer and contractor buys controlling stake in Starfish Commercial
6 days ago

Caledonian lands £10m modular student digs deal

Offsite specialist will help cut build times by half at Hereford scheme
6 days ago

Contractor services