Bank Accounts (PBA)
BMW projects will now operate
using Project Bank Accounts as part of an initiative designed to alleviate the
concerns of subcontractors working on Government-funded projects.
Project Bank Accounts involve
establishing a trust arrangement whereby the head contractor, in an agreement
with the principal and the bank, gives monthly instructions to the bank as to
how the funds are to be disbursed and the instructions must be in accordance
with the subcontract arrangements.
PBAs increase the accountability
of head contractors and give subcontractors a stronger position in the event
that the head contractor faces financial difficulty. PBAs are designed to
increase certainty for subcontractors and prevent head contractors from
of a Code of Conduct
The WA Building and Construction Industry Code of Conduct 2016 (the Code) is set to apply from 1
January 2017 to State projects valued over $10 million. The purpose of the Code
is to ensure the State of Western Australia contracts with Building Contractors
that conduct themselves in a reputable, fair, safe and responsible manner in
their dealings with the State and the building and construction industry more
The Code is also to promote fair
subcontracting practices and timely payment of subcontractors within the
building and construction industry.
The introduction of the Code will
complement the amendments to the Construction
Contracts Act 2004 and in conjunction with the roll-out of Project Bank
Accounts, will make for a fairer and improved framework for subcontractors
contracting with the State Government on construction projects.
To access the final report, click
13 December 2016