New figures released by the Government show it has smashed its target to roll out project bank accounts on centrally funded jobs.

Francis Maude, Minister for the Cabinet Office, said that £5.2bn worth of government construction projects are now being paid through project bank accounts.

Maude said: “As part of our long-term economic plan this government is reforming public sector construction and helping develop a more efficient and competitive industry that will lead to more jobs and better value for taxpayers.

“To win the global race, we must support the smaller suppliers which are the lifeblood of our economy. We’ve beaten our target on project bank accounts but we will keep pushing ahead to ensure suppliers of all sizes are treated fairly.”

The 2011 Government Construction Strategy set a target for £4bn of contracts to be awarded that use PBAs by the end of 2013 to 2014.

SEC Group’s CEO Rudi Klein welcomed the news as a major advance in securing prompt payment for the supply chain.

He said: “PBAs are the most effective mechanism for ensuring that firms are paid on time and in the right amount.

“Francis Maude’s statement indicates that almost half of the total of government construction is being paid through PBAs.”

He added: “We are getting reports that many local authorities are now using PBAs and they are also being used by the devolved governments in Scotland, Wales and Northern Ireland.”