A Project Trust Account is an account through which all payments required by the construction contract are received and paid. Project Bank Accounts are now a legislated compliance requirement for many projects in Queensland & an increasingly used payment process on tenders nationally.
Under the Building Industry Fairness (Security of Payment) Act 2017, all Builders are required to comply with current/incoming reforms which include the implementation of project bank accounts for eligible contracts. The Queensland Building & Construction Commission (QBCC) will monitor Builder compliance with the trust account framework.
NSW & WA also have rules in place for Builder compliance re: Project Trust/Bank Accounts & Retention Accounts:
IPEX is a tool that, if used correctly, will assist Builders to meet their obligations under the new QBCC framework.
Unlike a standard project trust account, the IPEX Payment Platform has an additional layer of security, which prevents the use of funds for anything other than payment of approved Subcontractors & Suppliers. Whilst there are penalties associated with doing so, there is nothing physically stopping the improper movement of funds out of a regular project trust account, limiting the level of protection it offers Developers/Lenders & Sub-Contractors/Suppliers.
With IPEX, retention funds are automatically collected at agreed rates & is set aside in a separate trust account. The Builder can see current retention balances but cannot use these funds.
Sub-Contractors can apply to have retention funds released when contract obligations have been completed. Assuming the Builder has not raised any dispute to this request within 14 days, the funds will automatically be released back to the Sub-Contractor.
IPEX is working with NCC Group, a global cyber security organisation, to ensure our technical solutions, processes, procedures and staff are at an appropriate level of cyber maturity. We will continue to enhance our privacy program to ensure our clients & customers receive the highest level of end-to-end security across the full data lifecycle, assured that IPEX is embedding privacy by design and default to meet and exceed any privacy obligations.
To learn more about NCC Group, please visit: https://www.nccgroup.com/au/
Project Trust Accounts are held with Macquarie Bank.
