SEC Group gets support for Project Bank Accounts
Posted by: electime 22nd January 2018
Construction’s leading trade organisation, the Specialist Engineering Contractors’ (SEC) Group, which has been lobbying for the use of project bank accounts (PBAs) for many years, is now being backed by the Federation of Small Businesses (FSB).
The Federation has written to the Business Secretary, Greg Clark, urging the Government to use PBAs on public sector projects. PBAs enable all those delivering infrastructure and services to be paid out of one pot – a ring-fenced bank account.
If PBAs had been in place on all Carillion’s contracts the losses incurred by the supply chain would have been significantly less.
Professor Rudi Klein, SEC Group CEO, said that he was delighted that the FSB had come “on board”.
He added: “I would now like to see the Government introduce legislation requiring PBAs to be used on all construction works over £1million. Queensland in Australia has done this. From 1 January 2018 this will happen on public sector works and from 1 January 2019 on private sector works.”
