When a project bank account is needed

New laws

On 1 March 2021, project bank accounts were replaced with a new streamlined trust account framework. Read about the new trust account framework.

The following information only applies to project bank accounts for certain government contracts with tenders released between 1 March 2018 and 28 February 2021.

The head contractor is responsible for deciding whether a building and construction project requires a project bank account (PBA).

They need to consider several factors in making this decision, including whether:

  • the project meets the threshold tests
  • the work is classed as 'building work'
  • they have suppliers or subcontractors
  • their subcontractors are related entities
  • their project is exempt from a PBA.

Sometimes, a contract variation or amendment may result in a project needing a project bank account, even if it didn't meet the criteria when the project began.

This guide explains all the factors that a head contractor must consider when deciding whether to set up a PBA for a project.

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