Project Bank Accounts now in play
Amendments to the Construction Contracts Act 2004 now provide useful ways to resolve contractual payment disputes by providing building contractors, subcontractors and suppliers with a right to be paid within a reasonable period of time, and a low cost method of enforcing that right.
The amendments are the first part of a whole of Government approach to improving payment protection for subcontractors and are designed to make it easier for subcontractors to access the rapid adjudication process for resolving construction payment disputes.
Project Bank Acccounts (PBAs) now apply to construction projects, owned by Business Management and Works (BMW) and valued between $1.5 and $100 million, and are an important measure for streamlining the payment process along the supply chain, improving transparency and accountability.
The Department of Commerce has information on its website, and the Department of Finance, together with the Building Commission, has scheduled briefing sessions on how the PBA model will operate and the implications for those engaged on BMW projects.
The sessions will include:
- how project bank accounts work
- what the new PBA model looks like
- what it means for you as a contractor or subcontractor
- the process for opening the accounts
- the process for you as a customer - anti-money laundering legislation
- implications of PBAs on other banking arrangements