The Queensland Government has announced that from 1 March 2018, the Project Bank Account (PBA) regime will apply to all building and construction projects (excluding engineering projects) tendered by the Queensland Government valued between $1 million and $10 million.
You can read more about the nature of PBAs and how they work in our earlier update dated 6 September 2017.
This date has been revised from the Government’s earlier announced date of 1 January 2018. The extension of the reach of PBAs to private sector building and construction projects valued from $1 million is still anticipated to commence on 1 January 2019. This will be subject to a review of the PBA regime, currently set for September 2018.
To ensure you are ready for the commencement of the PBA regime, you should consider the following:
- Consider if the PBA regime is applicable to your project and, if so, seek legal advice as to the steps required to establish and operate PBAs in compliance with Building Industry Fairness (Security of Payment) Act 2017 (BIFSOPA).
- The penalty provisions for failing to comply under BIFSOPA are severe. Therefore, it is critical that head contractors adapt their processes and procedures in order to comply with the PBA obligations under BIFSOPA.
We will be discussing PBAs in greater detail at our upcoming seminar on Thursday 22 February 2018 – numbers are limited. For details and registration, visit cdilawyers.com.au.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader’s specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
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