Major contractor backs PBAs in Wales
Tier 1 contractor Morgan Sindall has backed the use of project bank accounts (PBAs) in Wales, during a recent event hosted by construction framework SEWSCAP.
Luke Owen, managing quantity surveyor at Morgan Sindall’s Cardiff office, said, “As a large tier 1 contractor we fully support PBAs. Contrary to various adverse reports the costs and administration involved in setting up and operating them is minimal. On the positive side we find that they help to improve the performance of our supply chain.”
A PBA enables all firms in the supply chain to be paid from one pot, without payments having to cascade through the different layers of the supply chain. The monies are ring-fenced so that if there is an insolvency upstream small firms in the supply chain don’t lose out.
In December 2017 the Welsh Government introduced a new project bank account policy to encourage supply chain best practice in public construction projects.