LEADING trade association Select has demanded the threshold for project banks accounts (PBAs) is lowered in the wake of the collapse of Carillion.

PBAs are ring-fenced accounts which offer assurances that contractors on construction projects are paid in full and on time.

Select, which represents electrical contractors, said the collapse of Carillion under a £1.5 billion debt mountain, “illustrates perfectly why payment protection is required”.

The Scottish Government introduces Project Bank Accounts two years ago and Newell McGuiness, the outgoing managing director of Select, said: “Now is the time for them to reinforce that foresight and provide a safety net for SMEs.”