SEC Group gets support from Federation of Small Businesses on Project Bank Accounts

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SEC Group gets support from Federation of Small Businesses on Project Bank Accounts

Construction’s leading trade organisation, the Specialist Engineering Contractors’ (SEC) Group, which has been lobbying for the use of project bank accounts (PBAs) for many years, is now being backed by the Federation of Small Businesses (FSB).

The Federation has written to the Business Secretary, Greg Clark, urging the Government to use PBAs on public sector projects.  PBAs enable all those delivering infrastructure and services to be paid out of one pot – a ring-fenced bank account.

If PBAs had been in place on all Carillion’s contracts the losses incurred by the supply chain would have been significantly less.

Professor Rudi Klein, SEC Group CEO, said that he was delighted that the FSB had come “on board”.

He added:

“I would now like to see the Government introduce legislation requiring PBAs to be used on all construction works over £1million.  Queensland in Australia has done this.  From 1 January 2018 this will happen on public sector works and from 1 January 2019 on private sector works.”

Notes for Editors

  1. SEC Group represents the following trade associations: British Constructional Steelwork Association, Building Engineering Services Association, ECA -Electrotechnical and engineering services trade body, Lift and Escalator Industry Association, SELECT (Electrical Contractors Association of Scotland) and SNIPEF (Scottish and Northern Ireland Plumbing Employers’ Federation).   SEC Group represents the largest sector in the UK construction industry (by value)
  2. For further information please contact Professor Rudi Klein on 07767 412 903 (email: Rudi.Klein@secgroup.org.uk) or Maria Balermpa, SEC Group Operations and Public Affairs Manager on 07508 559 231 (email: contact@secgroup.org.uk)

 

2018-01-23T17:12:09+00:00 23 January 2018|Articles, Press Statements|