SNIPEF welcomes HS2’s use of PBAs
July 24, 2020 |
The decision of HS2, to support its supply chain across its massive rail contract by agreeing to project banks accounts (PBAs) for key projects in Phase 1, has been welcomed by the Scotland and Northern Ireland’s Plumbing Employers’ Federation, SNIPEF.
The use of PBAs provides more transparent and speedier payments for companies at all levels of the supply chain. Payments are made from one pot and do not have to cascade through multiple tiers of contractors.
Fiona Hodgson, Chief Executive of SNIPEF, said: “This is excellent news and something that the construction industry in Scotland has been calling for over many years. It is especially welcome since the HS2 project will generate an estimated 400,000 contracts across its supply chain and that two thirds of these will be with SMEs.
“It is our hope that the acceptance of PBAs by such a flagship project will act as an exemplar for all construction projects, major and minor, in future.
“The announcement is also, I believe, an acknowledgement of the hard work done by the Specialist Engineering Contractors (SEC) Group, of which SNIPEF is a member, which has been lobbying for PBAs over recent years.”