When a project bank account is needed
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.