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Scottish public sector projects receive lower PBA levels

20 February 2019

Thresholds for public sector construction projects using project bank accounts (PBAs) have been reduced by more than half by the Scottish government.

Previously set at £4.1m when the use of PBAs became mandatory for Scottish public sector projects in October 2016, this has now been reduced to £2m.

The action will take effect from 19 March, with public bodies required to include a PBA in tender documents for public works contracts with estimated value of a minimum of £2m, with the level set at £5m for civil engineering projects.

Specialist Engineering Contractors' (SEC) Group national executive officer Alan Wilson stated his organisation had pressed the 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," he said.

SEC Group has also stated that the Scottish government is increasing its efforts in encouraging all public sector procurement bodies to implement PBAs.

The use of PBAs has increased considerably since becoming mandatory and use of the concept has won praise from a number of those involved through making payment quicker and simpler throughout the supply chain.

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