{"id":79797,"date":"2020-07-23T09:39:19","date_gmt":"2020-07-23T08:39:19","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=79797"},"modified":"2020-07-23T09:39:19","modified_gmt":"2020-07-23T08:39:19","slug":"hs2-project-bank-accounts","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/hs2-project-bank-accounts\/79797\/","title":{"rendered":"HS2 implements PBAs for greater payment protection"},"content":{"rendered":"<h2>HS2 Ltd is giving more support to companies in its supply chain by approving the use of Project Bank Accounts (PBAs) across key contracts on Phase One<\/h2>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The use of PBAs allows a greater transparency of payments and can speed payments up for companies at all levels of the supply chain. This is because <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/late-payments-in-construction-2\/71481\/\" target=\"_blank\" rel=\"noopener noreferrer\">payments<\/a> are made out of one pot and do not have to cascade through multiple tiers of contractors.<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The measure has been welcomed by the construction sector.<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Following a successful trial of PBAs on two enabling works contracts, they have been shown to provide an element of protection against insolvencies upstream in the supply chain. <\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Given that HS2 will generate an estimated 400,000 contracts across its supply chain and that two-thirds of these will be won by <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-industry-smes\/79575\/\" target=\"_blank\" rel=\"noopener noreferrer\">small to medium-sized enterprises<\/a>, this is a significant boost of confidence for the sector.<\/span><\/p>\n<h3>Economic recovery from the Covid-19 pandemic<\/h3>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">At a time of economic uncertainty, due to the Covid-19 outbreak, this is a further step HS2 is taking to provide certainty and assurance for companies in, and aligned to, the construction industry.\u00a0<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In May, HS2 announced that it was implementing faster payments at all levels of the supply chain in response to the pandemic.<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Andy Cross, rail systems procurement director, said: \u201cI am thrilled that we have taken this crucial step to further strengthen our fair payment policies and in so doing, support companies at all levels of the supply chain through the use of PBAs.\u00a0<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">\u201cHS2 will play a critical role in the recovery of the UK\u2019s economy as we emerge from the pandemic, supporting and creating jobs across the construction industry. <\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">&#8220;This announcement means that companies, big or small, working with us will feel confident and supported as we work together to build Britain\u2019s new low carbon high speed railway.\u201d<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Rudi Klein, CEO of the <a href=\"https:\/\/secgroup.org.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Specialist Engineering Contractors<\/a> (SEC) Group, added: \u201cImplementing PBAs now will be a massive boost to construction SMEs struggling to make ends meet as we emerge from the current crisis. <\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">&#8220;HS2 will also benefit since PBAs will encourage more collaborative working and help reduce <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/global-construction-costs-set-to-rise\/41364\/\" target=\"_blank\" rel=\"noopener noreferrer\">construction costs<\/a>. <\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">&#8220;Given HS2\u2019s decision there\u2019s no longer any excuse for contracting authorities not to use PBAs.\u201d<\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Government approval for the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/notice-to-proceed-on-works\/74833\/\" target=\"_blank\" rel=\"noopener noreferrer\">next stage of the HS2 project<\/a> was given in April and has meant HS2 contractors now have the go-ahead to start building the new railway. <\/span><\/p>\n<p style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">As the main works civil contractors begin to move into construction and detailed design, a huge amount of new contract opportunities are being made available.<\/span><\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>HS2 Ltd is giving more support to companies in its supply chain by approving the use of Project Bank Accounts (PBAs) across key contracts on Phase One.<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[676,882,283,473,579,701,280],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-79797","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-construction","8":"tag-employment","9":"tag-finance","10":"tag-hs2","11":"tag-infrastructure","12":"tag-supply-chain","13":"tag-transport"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>HS2 implements PBAs for greater payment 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