The Use of Project Bank Accounts and the Implication of the Construction Code of Conduct in Western Australia

The statutory review of the Construction Contracts Act 2004 (WA), (the CCA) identified a number of “unfair” payment practices and construction administration behaviour in the Western Australian construction industry. In response to the review recommendations, the Western Australian government has introduced a number of procurement and payment initiatives which will apply to state government projects. One initiative is the introduction of Project Bank Accounts (PBA’s) which will be used on the majority of projects administered by the Department of Building Management and Works (BMW) for tendered projects with a construction value over $1.5 million, and utilize an AS2124-1992 contract.