The first payment in a scheme designed to speed up payments to contractors working on public sector construction projects has been made, the Scottish Government has confirmed.

Project Bank Accounts (PBAs) are ring-fenced accounts from which payments can be made directly from a client to contractors and sub-contractors, and help to improve cash flow through the supply chain.

The Scottish Government has been co-ordinating trials and on Sunday it said a "significant milestone" had been reached after contractors received the first PBA payment from NHS Lanarkshire on two work packages worth £1.4m at Monklands Hospital.


The payment was made under NHS National Services Scotland's 'Frameworks Scotland 2' agreement with Graham Construction.

Commenting on the scheme, Deputy First Minister Nicola Sturgeon said: "This first payment under the Project Bank Account scheme represents a significant milestone, and is testament to the Scottish Government's support for contractors and subcontractors working on public sector construction projects.

"We are absolutely committed to ensuring every pound spent on infrastructure investment goes as far as possible to support businesses and jobs, building greater resilience into the broader Scottish economy.

"I fully recognise the considerable effort of those involved in the development of PBAs, and in particular the efforts of those at NHS Lanarkshire and Graham Construction, who have worked tirelessly towards this notable achievement.

"Our focus on prompt supply chain payment will continue, and we will work closely with our delivery partners in other pilot projects to build positively on what we have learned through our experience at Monklands."

(JP/IT)