Scottish government bodies must include a PBA in tender documents for contracts commencing procurement procedures from 31st October 2016 with an estimated award value of at least £4,104,394 for building projects and £10 million for civil engineering projects.
Finance secretary Derek Mackay said: “This is an important milestone in the government’s commitment to improving cashflow for smaller firms. The PBA guidance translates trial programme experience into a simplified common approach with practical resources for implementation in Scottish Government projects. We urge all other organisations involved in commissioning work on Scotland’s infrastructure to use PBAs.”
The move has been welcomed by trade associations.
Specialist Engineering Contractors’ (SEC) Group Scotland chairman Eddie Myles said: “SEC Group Scotland has been the leading exponent of PBAs since they are the most effective method for ensuring regular and secure payments to construction supply chains, especially SMEs.”
Newell Mc Guinness, managing director of the Scottish Electrical Contractors' Association (Select), said: “Poor payment practices are the biggest killer of productivity and growth in Scottish construction. PBAs will help curb abuse and thus enable small firms to deliver to their full potential.”
Fiona Hodgson, managing director of the Scottish & Northern Ireland Plumbing Employers’ Federation, added: “Scottish government is to be congratulated. Dealing with poor payment practices has to be the number one priority for construction. I look forward to the time when we can half the threshold for using PBAs.”
