Electrical contractors in Scotland have called for increased regulation surrounding payment security following the collapse of Carillion.

SELECT, the trade association for Scotland's electrical contracting industry, have joined other industry bodies in calling for a lowering of the threshold at which Project Bank Accounts (PBAs) become mandatory and for PBAs to be universally required.

Currently, all Scottish Government bodies must include a PBA – a retained account earmarked for payment of contractors and ring fenced from spending – for all building projects over £4.1 million.

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However SELECT, along other organisations such as the Specialist Engineering Contractors (SEC) Group, have called for the threshold of applicability to projects to be valued instead at £2m.

Newell McGuiness, Managing Director of SELECT, said: "The crisis which has surrounded the construction industry since the collapse of Carillion illustrates perfectly why payment protection is required.

"The Scottish Government had the foresight to introduce Project Bank Accounts 2 years ago and now is the time for them to reinforce that foresight with a proactive, forward-looking legislative agenda and to provide a safety net for the SMEs which are building Scotland's future infrastructure.

"Having a PBA in place would provide peace of mind, not just for our members, but for all of Scotland's SMEs, who work in the construction industry in Scotland. This legislation could arrest the 'domino effect' that can devastate an industry in the event of another collapse like Carillion."

(LM/MH)