Crossrail sets historic example with project bank accounts

Published:  10 May, 2010

Reports that Crossrail will be using project bank accounts on all its major contracts have been welcomed by the Specialist Engineering Contractors’ (SEC) Group. Payments for firms in the supply chain delivering Crossrail’s projects will be paid directly out of a ring-fenced bank account.

Trevor Hursthouse, chairman of SEC Group, which represents a sector comprising over 60 000 companies in the UK construction industry, welcomed the news. He said, ‘This is an historic step. It will dramatically change construction industry payment practices, with the result that cash flow to the supply chain, especially to SMEs, will be assured.

The Office of Government Commerce has estimated that the use of fair payment practices such as project bank accounts will reduce the cost of construction projects by as much as 2.5%. This will represent significant savings to Crossrail, as well as reducing the risk of insolvencies which invariably cause disruption to projects.

Trevor Hursthouse concludes, ‘Crossrail has now set an example for all public-sector clients to follow. We hope to see project bank accounts used as a standard on all public-sector projects. This will also help deliver the Chancellor of the Exchequer’s Budget commitment to discharge payment within five days, especially along the supply chain.’

comments powered by Disqus



Welcome to Modern Building Services Online, the web edition of Modern Building Services (MBS) journal and the UK's most popular Building Services engineering site. Modern Building Services covers the entire Building Services Engineering industry. This site contains archived content from the journal, plus web-specific content.

When you go to our digital edition, you can also access the archive of digital editions.


Modern Building services has a group
on Linkedin - join us!


  • Energy and sustainability: Performance and analysis manager

     An exciting opportunity will arise shortly for an exceptional person with extensive experience of managing sustainability within large complex organisations. Can you demonstrate extensive experience of energy management, proven ability to drive program......

more jobs »


"Is the Building Services industry lagging behind in the implementation of BIM?"