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ARTICLE · 17 MAY 2017

PBAs: good for subcontractors but large contractors resistant

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Larger WA construction contractors and their spokespersons oppose any plans to expand the operation of the PBA scheme.

AustraliaReal Estate and Construction
Murray Thornhill
Murray Thornhill
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Project Bank Accounts ("PBAs") have been used on WA Building Management and Works ("BMW") projects worth $1.5m to $100m for about 8 months. WA Premier, the Hon. Mark McGowan is looking at expanding the scheme to apply to private construction works as well. Queensland Premier, the Hon. Annastacia Palaszczuk is looking to introduce the scheme for government projects in that State.

Perhaps not surprisingly, larger construction contractors and their spokespersons oppose plans to expand the operation of the scheme, citing excessive paperwork and compliance costs. Despite objections, the scheme may be seen as justified by the failure of adjudications, Personal Property Securities registrations and "fair value" claims to provide subcontractors with other options for recovering payment from insolvent head contractors.

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