Use of project bank accounts on the rise

摘要

The value of government contracts awarded that are using project bank accounts has risen to £5.2bn, well ahead of the government's target of £4bn by 2014, Cabinet Office minister Francis Maude has said. A project bank account (PBA) is a ring-fenced bank account from which payments are made directly and simultaneously to a lead contractor and members of the supply chain. The aim is to enable faster payments, so those lower down the supply chain benefit from that cash-flow. Unveiling progress on implementing PBAs at the Government Construction Summit last week, Cabinet Office minister Francis Maude said the use of PBAs would help SMEs. He said: "We've beaten our target on PBAs but we will keep pushing ahead to ensure suppliers of all sizes are treated fairly."