Project Bank Accounts

The State Government announced the expansion of Project Bank Accounts (PBA) for Government projects where the total value of works exceeds $1.5 million (see Ministerial announcement). PBAs provide better protection to subcontractors and reduce the financial stress on subcontractors, their employees, suppliers and families. Additionally, PBAs improve the speed of payment for subcontractors and increase transparency in the payment process.

The purpose is to provide security and certainty of payment to the supply chain, which comprises of the head contractor and first tier (or tier 1) subcontractors for any given awarded contract greater than $1.5 million (inc. GST) in value.

The PBAs come into effect for construction contracts tendered after 1st July 2019, however at our discretion we may include PBAs in tenders issued in late June 2019. Please note the PBAs will not be applied to existing contracts.

What is a PBA?

A PBA is a contract-specific bank account that operates under a trust arrangement. Any payments made by us are directly and simultaneously paid to the head contractor and subcontractors and suppliers in the supply chain. The PBA is aligned to a trust deed, which provides a degree of insolvency protection for the supply chain. There is one PBA per contract. A PBA does not interfere with any contractual provisions governing the preparation and submission of interim valuations or certification of payments. In addition, it does not remove the contractor’s responsibility for managing and selecting its supply chain; or that the work is performed in accordance with the contract; or remove statutory obligations from ourselves, contractors and the top tier subcontractors. Our role is to confirm payment transfers from the account.

How does this affect contracts?

  • From 1 July 2019 new Main Roads contracts will include the use of PBAs. 
  • Head contractors will be required to:
    • Establish a PBA at the start of the contract.
    • Advise details of eligible subcontractors (contract value >$20,000 (inc. GST))
  • Payment claims will include the progress claim for the Head Contractor plus a breakdown of payments for subcontractors.
  • Main Roads makes payment to PBA – head contractor and subcontractors are paid simultaneously

Example Special Conditions for Tier 1 Subcontracts for Project Bank Accounts

With the introduction of Project Bank Accounts from 1 July 2019 for all new contracts with a value of $1.5 million (GST inclusive) or more, new conditions for will be required to be included in tier 1 subcontracts for Project Bank Accounts. These conditions will need refer to PBA payment process and include reference to subcontracts equal to or greater than $20,000 (GST inclusive) and the option of opt-in provisions for other subcontracts, and suppliers of goods and materials only. An example of these Special Conditions is provided for information.

Main Roads Major Works (AS 2124) documentation has been updated to include provisions for PBAs and is available on our Major Works page.

Subcontractor payment delay

Please refer to the Subcontractor payment delay page for further information.

Further information

For further information, please contact Krish Naren, PBA Project Manager on 138 138 or email projectbankaccounts@mainroads.wa.gov.au.

Modified: 15 Aug 2019