A key priority for the Welsh Government and the Welsh Construction Forum, which was established by the Welsh Government during the Covid-19 pandemic, was to support the construction sector with prompt and secure payment processes.
One of the first outputs of the Welsh Construction Forum is the publication of a new “12-step guidebook” to support public and private sector construction partners to prepare project bank accounts for public sector contracts. These will provide cash-flow assurance to contractors and SME’s as part of the Welsh Government’s policy of fair payment. The guidebook has been produced in Welsh and English and can be viewed here:
Welsh language: https://bit.ly/3uyQ8kO
English Language: https://bit.ly/3B6RJ3I
Ed Evans Chair of the Welsh Construction Federation Alliance (WCFA) and Director of the Civil Engineering Contractors Association (CECA) Wales said: “Cash flow is the lifeblood of our industry and we hope that this simple guidebook, prepared and published through a partnership between public and private sectors, will encourage public sector clients to play their part in helping businesses. Setting up Project Bank Accounts will safeguard monies owed to the supply chain, speed up payments and ensure that, in the worst cases of big contractors going bust, smaller businesses don’t lose out.”
The Project Bank Account (PBA) guidelines were drafted by Prof Rudy Klein together with Michelle Morgan-Loughman of Actuate UK Wales, who said: “It has been over three years since the Welsh Government mandated project bank accounts and its usage has already protected many Welsh SMEs in the construction supply chain from late payments and cashflow insecurities. With thanks to the Welsh Construction Forum and its chair, the Minister Lee Waters MS, our colleagues at the Welsh Construction Federation Alliance and Professor Rudi Klein, this easy step by step guide will ensure wider adoption as this practice is embedded in public procurement and help the industry recover from the pandemic.”
Deputy Minister for Climate Change and Chair of the Welsh Construction Forum, Lee Waters said:“I’m delighted that these simple to use Project Bank Accounts Guidelines have come out of the Construction Forum. These guidelines provide confidence to construction clients, contractors and small businesses regarding payments especially during these extraordinary times. The guide complements the detailed information and training available via Business Wales and the Welsh Government.”
“I am also delighted that some Local Authorities and contractors have already used the guidelines to great effect and look forward to working with the construction sector to ensure a stable sustainable thriving sector in Wales.”
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Notes to Editors
- The Civil Engineering Contractors Association (CECA) Wales Cymru represents 60 of Wales’ largest and smallest civil engineering contracting businesses with a cumulative annual turnover in excess of £1bn and employing over 6,000 people. These businesses play a huge part in supporting communities across Wales and make a significant contribution to the economic prosperity of our nation. Our members are also major providers of training and apprenticeship opportunities. On a more fundamental level it is our members who will build the infrastructure that our nation needs to prosper.
- The Welsh Construction Forum was established by the Welsh Government during the Covid-19 pandemic as a public and private sector forum to address the challenges facing the construction sector in Wales. It is chaired by the Deputy Minister for Climate Change, Lee Waters, MS. More information on the Forum can be found via this link Welsh Construction Forum web-page.