The Scottish Government has just announced that the threshold for using project bank accounts (PBAs) has reduced to £2 million (from £4.1 million). Since 31 October 2016 PBAs have been mandated for use by Scottish Government bodies.
As from 19 March 2019 public bodies must include a PBA in tender documents for public works contracts with an estimated value or more than or equal to £2 million (£5 million for civil engineering projects).
SELECT’s Acting Managing Director Alan Wilson said:
“SELECT and SEC Group Scotland have been pressing Scottish Government for some time to reduce the threshold to £2 million. Clearly Scottish Government has been listening and industry SMEs will be the prime beneficiaries of this lowering of the threshold.”
Scottish public bodies responsible for a total of £1bn of projects have either:
used a PBA(s);
included a PBA in their ITTs;
indicated their intent to use a PBA
The Scottish Government is also stepping up its efforts to encourage all bodies involved in public sector procurement to implement PBAs.