5 ways to improve the PBA model
The Property Council has released a position paper outlining the industry’s collective solutions to address the primary difficulties that have been experienced by the sector in working under Stage 1 of the State Government’s Project Bank Account (PBA) reforms.
The ‘5 Ways to Improve the PBA Model‘ paper offers practical improvements to the framework and will guide the Property Council’s advocacy as the Government commences a review of the system’s effectiveness over coming months.
From 1 March 2018, building projects tendered by the Queensland Government (excluding engineering projects) valued between $1 million and $10 million have been operating under the PBA model – which is aimed at safeguarding payments for Subcontractors. It is the Government’s intention to apply the model to all public and private projects above $1 million after 1 March 2019.
The Property Council maintains the position that the entire PBA reform package is counterproductive to the Government’s stated objectives and will have a perverse impact on the industry. However, the Property Council has been working closely with its membership to identify practical and achievable improvements to the framework.
The Property Council has called on the Government to:
- Realign timeframes and penalties
- Rationalise the trust accounts
- Remove Principal supervision
- Allow greater flexibility in payments
- Defer full implementation
Evaluation and consultation activities in relation to Stage 1 of the reforms are expected to commence shortly. The Property Council will be engaging with members and the Building Industry Fairness Reforms Implementation and Evaluation Panel to ensure the industry’s concerns are understood and addressed.
The Property Council’s PBA position paper can be accessed here.