Finance Minister Sammy Wilson outlined how the introduction of a new payment method will help safeguard subcontractor payments in many government construction contracts.
Major first tier subcontractors working on a project will no longer have to wait for main contractors to process their payment; instead they will receive it directly through a bank account specific to the project they are working on. This will see subcontractors working on Government projects receiving payment in five days or less from the date the client deposits funds in the Project Bank Account. It will also help to protect their money in the event of the contractor entering administration or receivership as the money is held in an account in trust for the supply chain.