Setting up project bank accounts 12 easy steps

摘要

WHAT is a project bank account (PBA)? A PBA is a bank account ring-fenced by a trust arrangement. The trustees of the funds in the PBA are usually the client and Tier 1 contractor. The beneficiaries should be named subcontractors, sub-subcontractors plus the main contractor. A PBA is a collaborative device since it enables all members of the team to be paid simultaneously from the same pot. PBAs do not cut across contractual provisions that determine entitlement to payment; they are simply a safe receptacle for the cash. The client pays into the PBA the amount it considers due for payment following receipt of a payment application from the Tier 1 contractor. Depending upon the type of electronic payments used, the monies in the account can be disbursed to beneficiaries within a maximum of five days. Highways England - the most prolific user of PBAs - manages to ensure that payments reach sub-subcontractors within 18 days of the assessment (valuation) date under the main contract (see table below).