PBAs are designated bank accounts that guarantee supply chain construction businesses participating in public sector projects receive their payments within five days or less (Photo: AdobeStock)

Barclays, NatWest and Lloyds have all been declared Nominated Service Providers, after meeting new criteria for the Project Bank Accounts (PBA) initiative.

PBAs are designated bank accounts that guarantee supply chain construction businesses participating in public sector projects receive their payments within five days or less. The system is designed to help improve cash flow, especially considering that traditional payment timelines for subcontractors not utilising PBAs can extend up to 90 days.

PBAs also protect payments against insolvency.

The Welsh Government says that SMEs using the three accredited banks can be 鈥渃onfident they will receive a high level of support when setting up PBAs.鈥�

Mark Drakeford, the Cabinet Secretary for Finance and Welsh Language, said, 鈥�Project Bank Accounts offer strong support to our construction industry. By ensuring SMEs receive payments within five days, we鈥檙e providing cash flow protection that helps these businesses thrive.

鈥淗aving three major banks now accredited as Nominated Service Providers strengthens this initiative, giving SMEs the confidence and support they need.鈥�

PBAs are a requirement for funding on all Welsh Government construction projects that fall within scope and are recommended as best practice for the broader public sector.