The Law Reform Commission of Western Australia in its 1998 report on Financial Protection in the Building and Construction Industry identified a range of benefits associated with a trust scheme. In 2003 the Cole Royal Commission made a finding that a trust fund had considerable merit in ensuring subcontractors get paid monies for which they are entitled and, whilst Commissioner Cole did not recommend the establishment of a trust model, he nevertheless emphasised that “this should not be taken to be recommending against the model”. The Collins Report recommended the establishment of a statutory construction trust to apply to all building projects valued at $1M or more. The Wallace Report recommended that monies held on retention, and other forms of security, should be held under a Construction Retention Bond Scheme. In December 2016 the Queensland Government announced that it is in the process of introducing a suite of amendments that will include the introduction of Project Bank Accounts (PBA’s) to start from 2018 on all Queensland Government projects between $1 million and $10 Million, and from 1 January 2019, on all construction projects over $1 Million. In 2014, the NSW Government introduced regulations to apply to contracts between head contractors and subcontractors for non-residential projects over $20 Million, requiring head contractors to deposit subcontractor’s retention moneys into accounts with authorised “approved deposit-taking institutions”. In June 2013 the Western Australian Government announced it would PBA’s on construction projects managed by the Department of Finance, Building, Management and Works. As from 30 September 2016, the Western Australian Government has mandated PBA’s on Government projects valued over $1.5 Million and involving one or more subcontractors. Further, the WA Government will also develop a Code of Conduct for contractors working on state government projects requiring adherence to existing laws. The New Zealand Government introduced changes to its Construction Contracts Act 2002 (NZ) in 2015 which provide that as of 31 March 2017, retention moneys withheld under a construction contract must be held in trust. A number of states in the USA, provinces of Canada and the United Kingdom have also established trust schemes. The Senate Inquiry recommended that the Commonwealth undertake a two year of PBA’s on 20 construction projects where the Commonwealth’s funding of the project exceeds $10 Million.
The Law Reform Commission of Western Australia in its 1998 report on Financial Protection in the Building and Construction Industry identified a range of benefits associated with a trust scheme. In 2003 the Cole Royal Commission made a finding that a trust fund had considerable merit in ensuring subcontractors get paid monies for which they are entitled and, whilst Commissioner Cole did not recommend the establishment of a trust model, he nevertheless emphasised that “this should not be taken to be recommending against the model”. The Collins Report recommended the establishment of a statutory construction trust to apply to all building projects valued at $1M or more. The Wallace Report recommended that monies held on retention, and other forms of security, should be held under a Construction Retention Bond Scheme. In December 2016 the Queensland Government announced that it is in the process of introducing a suite of amendments that will include the introduction of Project Bank Accounts (PBA’s) to start from 2018 on all Queensland Government projects between $1 million and $10 Million, and from 1 January 2019, on all construction projects over $1 Million. In 2014, the NSW Government introduced regulations to apply to contracts between head contractors and subcontractors for non-residential projects over $20 Million, requiring head contractors to deposit subcontractor’s retention moneys into “approved accounts with authorised deposit-taking institutions”. In June 2013 the Western Australian Government announced it would PBA’s on construction projects managed by the Department of Finance, Building, Management and Works. As from 30 September 2016, the Western Australian Government has mandated PBA’s on Government projects valued over $1.5 Million and involving one or more subcontractors. Further, the WA Government will also develop a Code of Conduct for contractors working on state government projects requiring adherence to existing laws. The New Zealand Government introduced changes to its Construction Contracts Act 2002 (NZ) in 2015 which provide that as of 31 March 2017, retention moneys withheld under a construction contract must be held in trust. A number of states in the USA, provinces of Canada and the United Kingdom have also established trust schemes. The Senate Inquiry recommended that the Commonwealth undertake a two year of PBA’s on 20 construction projects where the Commonwealth’s funding of the project exceeds $10 Million.