Department of Finance

Project Bank Accounts

Building Management and Works uses project bank accounts (PBAs) on the majority of its construction contracts valued at over $1.5 million.

Important information and documents relevant to the operation of PBAs are contained within the PBA Information Pack. The pack for AS2124 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.

Further information

The links below lead to a range of documents and videos 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.

Contact us

For further information on PBAs, please contact BMW’s Industry Liaison team on:

Phone: (08) 6551 1888

Email: BMWindustryliaison@finance.wa.gov.au

 

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