Advantages of new financial rules are taken into account
SELECT hosts two vital seminars highlighting the issues at stake in project bank accounts
Following the Scottish Government’s introduction of project bank accounts (PBAs) late last year, SELECT hosted a series of seminars highlighting their advantages. SELECT was prominent among organisations which lobbied for PBAs, which are designed to protect sub-contractors from upstream insolvency and payment abuses.
From October last year, PBAs are now a tender requirement on building projects worth more than £4.1 million and civil engineering projects valued at more than £10 million. Payments for sub-contractors and suppliers are now ring-fenced within the accounts.
The two seminars were run by the Specialist Engineering Contracting Group Scotland (SEC Group Scotland) at SELECT’s headquarters in Midlothian in conjunction with the Scottish Building Contract Committee (SBCC).
Held on 22 February, the seminars were well attended with representatives from SEC Group members as well as clients and main contractors among the 50 participants. The events covered topics such as the Scottish Government’s view, the client’s perspective, the banker’s view and how SBCC Standard forms will deal with PBAs.
The seminars were co-chaired by Eddie Myles, SEC Group Scotland Chair, and David Dunbar, SBCC Chair. The speakers included:
Professor Rudi Klein, Chief Executive of the SEC Group
Colin Judge, Principal Construction Adviser, Scottish Government
Hilary Cameron, Transport Scotland
Ann O’Connell, SBCC
Scott Culbertson, RBS.
Alan Wilson, SELECT’s Head of Membership and Communications and SECG (Scotland) Secretary, said: “The main benefit of PBAs, apart from assured payment and protections if a main contractor goes into administration, will be greater transparency in the payment chain.”
David Dunbar, a former President of the Royal Incorporation of Architects in Scotland (RIAS), added: “PBAs will now be the most effective method of ensuring regular and secure payments to the construction supply chain.
“It is of paramount importance that everyone involved knows what they entail – that is why we held these seminars.”
Newell McGuiness, SELECT Managing Director, told CABLEtalk: “SELECT was very pleased to be able to facilitate these seminars.
“With the SEC Group, SELECT was a leading exponent of PBAs as a means of addressing an issue which was detrimental to procurement in Scotland as a whole.”
Demi Armstrong is Events, Marketing & Website Coordinator