We’ll pay you quicker, HS2 promises project contractors
Companies supplying the HS2 project have been told they will be paid quicker to help them during the coronavirus crisis.
HS2 Ltd has taken a further step to support companies in its supply chain and has approved the use of ‘project bank accounts’ across key contracts on phase one, which creates a high speed line between London and the West Midlands.
The measure has been welcomed by the construction sector for providing certainty at a time of economic concern due to the coronavirus crisis.
Use of project bank accounts, or PBAs, provide greater transparency of payments and offers speedier payments for companies at all levels of the supply chain with payments made out of one pot and do not have to cascade through multiple tiers of contractors.
Following a successful trial of PBAs on two enabling works contracts, HS2 Ltd is now working with its construction contractors to implement these across existing and future contracts.
HS2 will generate an estimated 400,000 contracts across its supply chain and two-thirds of these will be won by small to medium sized enterprises.
In May, HS2 announced that it was implementing faster payments at all levels of the supply chain in response to the pandemic.
Andy Cross, rail systems procurement director, said: “I 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.
"HS2 will play a critical role in the recovery of the UK’s economy as we emerge from the pandemic, supporting and creating jobs across the construction industry.”
Mike Cherry, national chairman of the Federation of Small Businesses and a Staffordshire businessman, said: “HS2 is a major, multi-million-pound government project and it’s absolutely crucial that small businesses have the chance to win work and build it.”
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