At the end of 2017, the Welsh government launched a new project bank accounts policy "to support ethical business practices in government funded construction, infrastructure and service contracts". An updated procurement advice note and guidance, which public sector bodies are being encouraged to use, was published in December 2017 to support the policy.
The Welsh government intends to lead by example and will, from 1 January 2018, use project bank accounts "unless there is a compelling reason not to do so, on all conventionally-funded construction and infrastructure contracts and service contracts fully or part-funded by the Welsh Government with a value of £2m or more, which are delivered by the Welsh Government".
In making the announcement, Mark Drakeford, Cabinet Secretary for Finance, thanked the Specialist Engineering Contractors' Group in Wales for raising awareness of the challenges faced by many sub-contractors in securing payment. The commitment to project bank accounts is intended "to deliver fairness and to enable smaller businesses to prosper through delivering contracts in Wales"