As of 1 July 2019, all works contracts over the value of $1.35 million (ex GST) with the Water Corporation will require a Project Bank Account (PBA). The PBA is an alternative payment model designed to provide greater security of payment for subcontractors.
The PBA is a bank account that operates under a trust. Rather than monthly payments being made directly to head contractor’s regular bank accounts, they are paid into the PBA and the funds are distributed to the head contractor and subcontractors/suppliers simultaneously.
PBAs are intended to:
- provide a degree of insolvency protection;
- speed up the payment process for parties lower down in the supply chain; and
- increase transparency and accountability in the payment process.
They do not affect the contractor’s contractual rights and responsibilities to subcontractors and suppliers.
The documents below are required to be reviewed by all suppliers tendering for works contracts above $1.35 million (ex GST). The first document provides further information regarding the manner in which the PBAs will work. Annexures A, B and C will be required to be completed and executed by successful tenderers.
Please note that the Water Corporation will not negotiate the terms of the documents below.
- Part H to bid invitations - Project Bank Account information and conditions
- Annexure A - PBA Deed Poll
- Annexure B - PBA Agreement
- Annexure C - PBA Deed of Release and Priority
- Annexure D - Amendments to General Conditions
- Annexure E - Proposed terms for subcontract
- Annexure F - PBA Payment Report template
For further information regarding PBAs please contact Sarah Blythe at Sarah.Blythe@watercorporation.com.au