Home  |  About us  |  Information &
publications
 |  Strategic
Forum
 |  Discussion  |  Links  |  News  |  Blog  |  Contact us

Building a Better Future for the Construction Industry

NFB supports Abrahams’s bill on project bank accounts in public sector projects   15th January 2019

Debbie Abrahams MP has pledged to introduce a ten minute rule bill in Parliament ensuring that public sector projects over £500,000 use project bank accounts.

Abrahams thinks that her bill would stop small and medium-sized (SME) businesses being paid late by large companies, whilst protecting them from losing any money they are owed.

Project bank accounts (PBAs) are ring-fenced bank accounts within a trust arrangement so that, if a tier 1 contractor collapses, as Carillion did in January 2018, subcontractors will still receive money they are owed.

The National Federation of Builders (NFB) admires Abrahams’s hard work towards ensuring that SME subcontractors are treated with respect throughout the supply chain and the public sector needs to take a leading role in stamping out late payment.

Richard Beresford, chief executive of the NFB, said: “The NFB applauds Abrahams’s efforts to make the supply chain a fairer place for SME subcontractors. This bill could be the nudge needed to push contractors away from the business model that has payment delays built in.”
  

 

NEWS ARCHIVE Subscribe to the Construction Alliance News feed

7.12.18
Stigma attached to vocational education is unjust
Education Secretary Damian Hinds will tell an audience of business and education leaders that many young people are told that vocational courses such as apprenticeships are “second class” and the only way to get a good job is to get a degree. More

6.12.18
Contractors make switch from graduates to apprenticeships
Infrastructure contractors are starting to see a dramatic shift towards recruitment of apprenticeships according to new data published today. More

5.12.18
Is it time to legislate against late payment?
The Government needs to wake up and legislate statutory requirements to make late payment a relic of the past More

Latest More recent items Earlier items

divider
follow us on twitterfind us on Facebookwatch us on YouTube