Project bank accounts on target (2014) 25 3 Cons.Law 20 [Archived]
Project bank accounts on target (2014) 25 3 Cons.Law 20 [Archived]

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Project bank accounts on target (2014) 25 3 Cons.Law 20 [Archived]
  • Key points
  • What are PBAs and their benefits?
  • Public sector use of PBAs
  • Private sector use of PBAs
  • JCT and NEC amendments
  • Are PBAs here to stay?
  • Conclusion

This article appears as originally published in Construction Law on 1 April 2014 and is not maintained.

Project bank accounts have become widely used in public sector construction since their introduction just over four years ago. Alexander Whyatt of Clyde & Co finds much to commend their use by the private sector as well.

Key points

  1. The government has achieved its goal of delivering £4bn of construction work using Project Bank Accounts (PBAs)

  2. Adoption of PBAs by the government Construction Board has led to their increased use for publicly procured projects, but what are their main features

  3. In spite of widespread public sector support for PBAs, the private sector remains slow to adopt them

  4. Several of the major standard forms now include PBA provisions

  5. There is a tension between emerging payment trends in the wider industry, such as 120 day payments, and the promotion of PBAs

The government has achieved its commitment to delivering £4 billion of construction work through project bank accounts (PBAs) by the end of 2014; this was achieved even before January was over. This follows news from the Scottish government that it has been trialling PBAs as part of its evaluation of how Scotland’s £2 billion construction contracts are awarded, and commitments from both the Welsh and Northern Irish governments that they will utilise PBAs, respectively, on