Project bank accounts see members of the construction supply chain receiving payment in five days or less from the due date.
Cabinet Office is working with public sector construction procurers in pioneering a new way of paying supply chain members in construction projects through Project Bank Accounts (PBAs). PBAs see members of the construction supply chain – many of which are SMEs – receiving payment in five days or less from the due date. This eases cash flow through the system and supports closer working within the supply chain. Government Construction Board members have committed, over the next three years, to deliver £4 billion worth of construction projects using PBAs.
Cabinet Office has published a short briefing document on PBAs, as well as a much more detailed guide to the implementation of PBAs for government clients, which provides a process map for government clients looking to introduce PBAs in their construction projects.