In accordance with the McGowan Government’s expansion of Project Bank Accounts (PBAs) to come into effect from July 1, 2019, the Department of Communities has implemented the use of PBAs on most high value construction contracts.
Important information and documents relevant to the operation of PBAs are contained within the PBA Information Pack. The packs for AS2124 and HADC construction contracts is available on this site. Information packs for other contract types will be published on Tenders WA with the associated tender documentation.
What are Project Bank Accounts?
PBAs are an alternative payment mechanism that use a dedicated trust account to facilitate payments directly and simultaneously from a Principal through to the head contractor, and participating subcontractors, involved in a project. PBAs have a number of benefits, as they:
- provide a degree of insolvency protection
- speed up the payment process for parties lower down in the supply chain
- increase transparency and accountability in the payment process.
It is important to note that PBAs do not seek to alter the existing contractual rights and responsibilities of the parties to a traditional construction contract. Likewise, they will not prevent a head contractor from experiencing financial difficulty or managing the performance of subcontractors by withholding payments when contractual obligations are not met. Importantly, they do not constrain any party from seeking adjudication under the Construction Contracts Act 2004, or commencing legal proceedings in the event of a dispute.
The links below lead to a range of documents that serve as a useful starting point in understanding how PBAs operate in practice, and the roles and responsibilities of parties participating on a PBA project.
For further information on PBAs, please contact the Department of Communities Project Support Team.
Phone: (08) 9222 4686