As part of the work of the Construction Forum to raise awareness and improve payment processes its Infrastructure working group has produced a new set of simple to use guidelines for the use of project bank accounts (PBA) within public sector contracts, which provide cash-flow assurance to contractors and SME’s.
One of the key requirements of the Welsh Government and Construction Forum established by the Welsh Government during the Covid-19 pandemic was to jointly support the construction sector in particular with the certainty of future work pipeline and efficient procurement and payment processes. Deputy Minister for Climate Change, Lee Waters said, “I’m delighted that these simple to use Project Bank Accounts Guidelines have come out of the Construction Forum.
“These guidelines provide confidence to clients, contractors and small businesses regarding payments, especially during these extraordinary times. The guide complements the detailed information and training available via Business Wales and Welsh Government.
“I am delighted that already some Local Authorities and contractors have used the guidelines to great effect, and I look forward to working with the construction sector to ensure a stable sustainable thriving sector in Wales.”
The use of PBA’s provide certainty to clients, contractors and in particular SME regarding payments especially during these extraordinary times. The guide complements the detailed information and training available via Business Wales and WG procurement.
The PBA guidelines were drafted by Prof Rudi Klein together with Michelle Morgan-Loughman of Actuate UK Wales, and provide 12 simple steps to both client and contractor on setting up and using PBA’s Michelle Morgan-Loughman said ‘It has been over three years since the Welsh Government mandated project bank accounts and its usage has already protected many Welsh SMEs in the construction supply chain from late payments and cash flow insecurities.
With thanks to the Welsh Construction Forum and its chair, the Deputy Minister Lee Waters MS, our colleagues at the Welsh Construction Federation Alliance and Professor Rudi Klein, this easy step by step guide will ensure wider adoption as this practice is embedded in public procurement and help the industry recover from the pandemic.”
Ed Evans Chair of the Welsh Construction Federation Alliance said “Cash flow is the lifeblood of our industry and we hope that this simple guidebook, prepared and published through a partnership between public and private sectors, will encourage public sector clients to play their part in helping businesses.
Setting up Project Bank Accounts will safeguard monies owed to the supply chain, speed up payments and ensure that, in the worst cases of big contractors going bust, smaller businesses don’t lose out.”