Project Bank Accounts: availability and accessibility to subcontractors - CPN 7/2020

Purpose

1. This Construction Policy Note reiterates Scottish Government policy on the inclusion of subcontractors in a Project Bank Account (PBA); and reinforces it in practice through a notice to subcontractors.

Key message

2. Information must be available to and accessible by subcontractors to enable them to join a PBA.

Timing and coverage

3. This CPN applies with immediate effect and covers all current and future contracts containing PBA provisions.

Target audience

4. This note is intended for all relevant staff:

• in public bodies to which PBA policy applies (section 1 and 7-11)
• in all other bodies that can award public contracts to which a PBA could be applied
• in other organisations providing procurement routes for the construction of public buildings and infrastructure

Introduction

5. PBAs assure two things for subcontractors working on Scottish construction projects delivering built assets to the public sector:

• prompt payment
• protection of payment from the effects of main contractor insolvency

6. The former is good for businesses and their employees. The additional assurance PBAs give on the latter also make them good for the economy and society. It follows therefore that where a PBA is implemented it must be available to and accessible by subcontractors.

Guidance

7. Commissioning bodies can both facilitate and expedite subcontractors’ requests to join the PBA by ensuing that the main contractor receives and conveys a note of the information and associated guidance set out herewith at annex A. This annex shall henceforth be incorporated as appendix I - 1 of Scottish Government’s PBA guidance document.

Dissemination

8. Please bring this CPN to the attention of all those staff involved in the procurement of relevant construction projects.

Project Bank Accounts: availability and accessibility to subcontractors - CPN 7/2020

File type

4 page PDF

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