First Queensland government Project Bank Account construction projects announced
The Palasczuk Government has today announced the first three government construction projects that will benefit from the implementation of Project Bank Accounts in Queensland.
Minister for Housing and Public Works Mick de Brenni announced the projects in Parliament today.
“In 2015, we came to government with a commitment to deliver security of payment reforms for the Queensland construction industry, and we are delivering,” Mr de Brenni said.
“The Premier has said before – there is dignity in work. But there is no dignity in being left unpaid for work you’ve done.
“Last week, the Palaszczuk Government implemented the first phase of a new trust account regime for major building projects, with the introduction of Project Bank Accounts on government projects.
“Project Bank Accounts ensure 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.”
Mr de Brenni said that from 1 March 2018, Project Bank Accounts are 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,” Mr de Brenni said.
“That compliance regime includes penalties up to 2 years in prison.
“Project bank accounts are a giant step in reversing the damage caused by the previous LNP government’s policy of a self-reporting scheme for building companies.
“The first three projects that will benefit from Project Bank Accounts are a social housing project in Nundah, a replacement Fire and Rescue Station in Richmond, and the Inala Community Centre.
“Between these three projects, we estimate up to 180 construction workers will be protected by project bank accounts.
“The commencement of these arrangements will benefit the mums and dads, families, small business people out there having a go.
“They just deserve to be paid for the work they have completed.
“And this will go a long way to help ensure that all subbies are paid in full, on time, every time.”