Construction procurement: project initiation and business cases handbook

One of three handbooks that comprise the Client Guide to Construction Projects, The Project Initiation and Business Cases Handbook provides guidance to assist contracting authorities to successfully deliver construction projects and achieve value for money.

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Chapter 10: Project Bank Accounts

1. Overview
2. Guidance


1.1. Project Bank Accounts (PBAs) are ring-fenced accounts from which payments are made directly and simultaneously by a public sector client to members of a construction contract supply chain. Scottish Government bodies must include a PBA in tender documents for public works contracts commencing procurement procedures from 19 March 2019 whose estimated value is at least:

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


2.1. Detailed technical guidance through which public bodies can implement and operate a PBA in a construction contract is published here. The guidance also enables bodies outside Scottish Government which deliver public contracts to do the same. Construction Policy Note 1/2019 also provides further information and direction on project bank accounts.



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