Construction projects: Project Bank Accounts (PBAs)

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

The following Parliamentary Questions were answered in April 2018, providing updates on Project Bank Accounts:

• Question S5W-15758
• Question S5W-15759
• Question S5W-15760