The Queensland Government has announced the first three government construction projects that will benefit from the implementation of Project Bank Accounts.
The government recently implemented the first phase of a new trust account regime for major building projects, with the introduction of Project Bank Accounts on government projects.
The first three projects that will benefit from Project Bank Accounts (PBA) are a social housing project in Nundah, a replacement Fire and Rescue Station in Richmond, and the Inala Community Centre.
Project Bank Accounts ensures progress payments are paid through a trust for head contractors and first-tier subcontractors, meaning that money intended to pay subcontractors is used only for that purpose.
From 1 March 2018, Project Bank Accounts is now a requirement on all government building projects valued between $1 million and $10 million.
“In response to concerns from industry, we have also established a strict compliance regime to ensure that funds flowing through PBAs can only be used to pay those licensees that have performed the work,” Minister for Housing and Public Works, Mick de Brenni said.
“That compliance regime includes penalties up to two years in prison.”