WHO SHOULD READ THIS
- All participants in the Queensland Construction industry.
THINGS YOU NEED TO KNOW
- The Queensland Government has announced that Project Bank Accounts will apply to certain projects in Queensland from 1 March 2018.
WHAT YOU NEED TO DO
- Consider whether your building contract will require a Project Bank Account.
Last year, the Queensland Government passed the Building Industry Fairness (Security of Payment) Act 2017 (the BIF Act). A key feature of the BIF Act is the introduction of Project Bank Accounts (PBAs), in which funds are held on trust for contractors and first-tier subcontractors under a building contract. With the introduction of the BIF Act, penalties (including imprisonment) apply to head contractors that fail to correctly establish and administer PBAs.
You can read more about the introduction of PBAs in our earlier updates, located here and here.
The Queensland Government recently announced that from 1 March 2018, projects tendered by the Queensland Government will use PBAs on building and construction projects (excluding engineering projects) valued between $1 million and $10 million.
There is scope in the BIF Act for PBAs to apply to all private sector projects valued over $1 million from 1 January 2019, subject to a review of the PBA scheme, set for September 2018.
We will be discussing Project Bank Accounts in greater detail at our upcoming BIF Act seminars throughout Queensland.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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