Cash is King
Cash is king – especially in the construction sector.
6th March 2015
So if there is a plan to make sure suppliers and contractors are paid promptly by their clients then it is something we all need to hear about and learn about the details
Cashflow is one of the major issues facing all organisations and nowhere is it worried about more than in the construction industry. The flow of money from one supplier to another up and down the supply chain is the grease that keeps the cogs of our construction industry turning. Turn the flow off and our sector can operate. That is why late payment is such a frustrating issue and why the Welsh Government is backing the concept of Project Bank Accounts in attempt to speed up payment processes.
Three local authorities in Wales have identified projects to pilot PBA’s and yesterday was the first chance for the industry to hear firsthand how Project Bank Accounts might operate when the team from Swansea City Council explained the details of the trial.
The use of Project Bank Accounts in construction contracts is a commitment of the Construction Procurement Strategy endorsed by Welsh Government in July 2013. This supports the Wales Procurement Policy Statement issued in December 2012 which requires public bodies to adopt best practice approaches to payment through the supply chain. The Welsh Government is committed to ensuring that sub-contractors involved in the delivery of public sector contracts in Wales are treated fairly and with respect.
If you want to find out more about the concept then do please contact the CEW team.