Construction projects: Project Bank Accounts (PBAs)

Guidance for the public sector on setting up PBAs for construction projects.

Project Bank Accounts (PBAs) are ring-fenced accounts which see payments made directly and simultaneously by a public sector client to members of the construction supply chain.

They were introduced after a 2013 procurement review.

PBAs improve subcontractors' cashflow and ring-fence it from upstream insolvency.

Following the introduction of CPN 1/2019 relevant public bodies must include a PBA in tender documents for public works contracts commencing procurement procedures from 19 March 2019 with an estimated value more than or equal to:

  • £2,000,000 for building projects
  • £5,000,000 for civil engineering projects

Other bodies that can award public contracts, and other organisations providing procurement routes for the construction of public buildings and infrastructure, are asked to:

  • implement PBAs
  • integrate the associated guidance into their procedures

Further information

Watch a video about PBAs.


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Read blog posts about Project Bank Accounts from the Scottish Government and Royal Bank of Scotland.

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