Image source, PA

ScotRail has unveiled a £18m plan to try and improve its performance for passengers.

Leasing three extra trains and hiring more staff - including 55 drivers and 30 conductors - is part of the bid to improve its service.

The plan was demanded by Scottish government after months of disruption to rail services.

The remedial strategy will also see information screens upgraded at 16 stations.

Read more here.

Lib Dem MSP Mike Rumbles asks when passengers will see improvements as a result of ScotRail’s recent remedial plan.

Reverend Sally Foster-Fulton from Christian Aid Scotland is delivering today's time for reflection.

Image source, SCOTRAIL

MSPs will ask topical questions on the ScotRail remedial plan and the BBC investigation into CairnGorm Mountain Ltd/Natural Retreats from 2:05pm .

After topical questions, MSPs will debate the South of Scotland Enterprise Bill for the first time.

Then Tory MSP Maurice Corry leads a debate on financial scam prevention.

Image source, bbc

Mr Slessor says there must be a strong pipeline of projects to allow investment.

He argues we need to move away from this fixation of lowest price and concentrate on the qualitative aspects of construction, looking at community benefits from procurement.

Labour MSP Jackie Baillie seeks views on project bank accounts and wonders whether reducing the threshold to £2m make them more useful.

Gavin Paton says firms are still wrestling with the implementation of them and Shona Frame agrees administration of them is complicated.

Ms Baillie wonders what could improve financial management of construction projects.

"Set a realistic budget at the very outset," responds Mr Slessor.

Ms Frame adds that taking into account the cost of a project of the entire life cycle is important, since low cost may impact quality and end up costing more in the long-run.

Image source, bbc

Stephen Slessor accepts there is a challenge around late payments and he accepts there are unscrupulous contractors.

He accepts there is a concern around late payments from public sector clients.

Does the public sector act fairly in terms of scheduling payments, asks SNP MSP Colin Beattie.

In the main, but sometimes contractors have to finance projects for 60 to 90 days Mr Slessor replies.

SNP MSP Colin Beattie asks how prevalent late payments are in the construction sector.

Ms Frame says she more often sees disputes around levels of payment rather than late payment.

The industry is heavily regulated on payment procedures, she adds.

Mr Paton and Mr Slessor agree with this, though Mr Slessor adds that the adjudication process seems to have been "hijacked" by solicitors in recent years and it is not suitable to getting payment early.

Image source, Getty Images

Last year we reported financing projects such as schools and hospitals privately costs taxpayers billions of pounds more than public sector alternatives, parliament's spending watchdog says.

A report suggests a group of schools cost 40% more to build and a hospital 70% more to construct than if they were financed by government borrowing.

The National Audit Office report, external identifies costs and benefits of PFI.

The Treasury said it only approved PFI contracts that were value for money.

The collapse of Carillion, which was working on numerous PFI projects, has renewed criticism of such schemes.

Read more here.

Shona Frame from CMS Cameron McKenna Nabarro Olswang LLP says she has heard of some contracts where retention has been as high at 10% which seems "particularly onerous".

RICS explains retention, external is "a fund to meet any costs arising from the contractor’s failure to perform their duties, and thus the construction process is somewhat de-risked from a client’s perspective."

SNP MSP Angela Constance asks about the Building Scotland Fund, external.

Stephen Slessor says the fund helps bring more projects to market and agrees it a useful starting point for the Scottish National Investment Bank.

He suggests the SNIB will be able to add value to the renewable sector and low-carbon economy in particular.

Green MSP Andy Wightman asks for views on different ways to finance construction from PPP/PFI.

Gavin Paton from Burness Paull LLP says the hub model works well, although the NPD model is not working due to accounting issues at the moment.

Here's a break down of the acronyms!

• PPP stands for Public Private Partnership and PFI stands for Public Finance Initiative.
• The much criticised PPP/PFI is a form of procurement where the public sector procures services over a prescribed concession period (frequently 20 years or more) in a manner which leaves the risk of ownership and efficient operation of the project facilities with a private sector supplier.
• LLP stands for Limited Liability Partnership.
• NPD stands fornon-profit distributing system part of the Scottish government's bid to replace private financing models like PFI.
• The Scottish Futures Trust (SFT) is an arms-length company which was set up by the Scottish government after the SNP first came to power in 2007, to "deliver value for money across public sector infrastructure investment".

Gavin Paton from Burness Paull LLP says a combination of low margins and high risk common to construction leads to problems with lending.

Green MSP Andy Wightman asks whether construction gets the same level of business support from public sector bodies as other industries.

We effectively fund public sector and private sector contracts for the first 30 days, Morrison Construction's Stephen Slessor tells the committee.

This can mean in some instances we choose not to pursue certain contracts he adds.

Cash reserves, trade credit and bank warrants are used for the first 30 days, and we have this because we have a strong balance sheet Mr Slessor explains.

Image source, bbc

Mr Slessor says since the demise of Carillion the business environment has been difficult for construction companies.

The collapse of the construction giant will cost UK taxpayers an estimated £148m, the National Audit Office has said.

He also cites Interserve, where control has moved to a new company after administrators were appointed.

The Morrison Construction representative says the ability to fund growth has changed quite dramatically.

Construction is cash intensive and liquidity is key, he explains and SME's are struggling to attain reasonable finance.

Image source, bbc

The committee is now hearing from:

• Shona Frame of CMS Cameron McKenna Nabarro Olswang LLP
• Gavin Paton from Burness Paull LLP

• Stephen Slessor from Morrison Construction

Image source, bbc

How does Scotland compare to the rest of the UK, asks Ms Constance.

We're always trying to do more, but we have a pretty good network with the contractors, replies Mr Reekie.

The SFT chief executive explains there has been an increase in early contractor involvement.

"It could always be better," he adds.

Mr Reekie tells Ms Constance international best practice is being looked at, citing recent interaction with New Zealand.

The SFHA's David Stewart explains the average housing association in Scotland has less than 1,000 units so do not necessarily have the expertise on procurement.

He says training has been provided to members to improve capacity around procurement, including how to engage with SMEs in particular.

Graeme Dodds of Jacobs highlights efforts by Public Contracts Scotland, external to improve the process and he says making it more accessible to SMEs is important.