With growing uncertainty in the economic environment both in
Australia and globally, regulators of the building and construction
industry are focusing on introducing further measures to protect
retention monies and generally the flow of money down the supply
chain.
One such measure is the introduction of project bank accounts
("PBA"). At some stage, most
participants in the construction industry will encounter a dispute
about a time limit. Judges of the Queensland Courts are giving
clear warnings to be wary of time restrictions, whatever their
form.
WHAT ARE PBAS?
PBAs are an account where the principal makes payments directly
to a head contractor and subcontractors. The PBA is opened for each
project and is a trust account whereby any monies held in the
account are held for the benefit of beneficiaries of the money
(including subcontractors).
