Compliance
Trust account legislation compliance
Project trust accounts
Builder compliance
IPEX software works neatly with the QLD/QBCC statutory project/retention trust and NSW/WA statutory retention trust regimes. The Macquarie Project Trust/Retention accounts are compliant with current statutory requirements.
Builders are required to manage their own statutory compliance obligations and should already have their own internal procedures in place; these processes continue independent of and unimpeded by IPEX. For those in QLD, IPEX can make a reporting module available to assist builders in complying with the various administrative requirements of the QBCC Legislation.
Important links
Legislation by state/territory
Queensland
New South Wales
Western Australia
IPEX benefits
For developers/lenders in states with existing trust account legislation
Although builders may already be required to manage payments with a project trust account in your state, there are still multiple benefits to requiring them to do so via IPEX.
- Being asked to operate under IPEX conditions would still discourage any builder who may already be in financial difficulty from bidding
- Project funds are not only legally ‘ring-fenced’, they are also practically ‘ring-fenced’: even if your builder did experience cashflow issues during the project, they can’t withdraw project funds (outside of their own entitlements) without developer approval. Whilst statutory trust regimes may impose penalties for this behaviour if identified, they cannot prevent it from occurring
- Developers can still verify subcontractor payments/non-payments and cross reference percentage of contract paid against QS assessment before approving additional progress claims
- In the event of a payment default/insolvency event, progress payment/s already made to the builder have either been distributed to approved parties or remain in the account. Full account transaction history will also be made available to the developer.
Use cases
Who benefits
Developers
Reduce the risk/impact of builder insolvency. Deter distressed builders from tendering and protect your project against future builder cashflow issues.
Builders
Leverage your strong financial position into more contracts and better commercial terms without sharing commercially sensitive information.
Lenders
Prevent loaned funds from being diverted to other projects linked to your builder (or developer). Reduce risk and automate oversight for developer-builder lending.
Project managers
De-risk builder recommendations and identify non-payment of subcontractors/ suppliers immediately. Reduce reputational risk while maximising the chances of successful project delivery.
Subcontractors and suppliers
Work for builders who won’t risk your entitlements to cashflow other projects. Reduce your risk of non-payment in the event of builder insolvency.
Construction lawyers
Add practical controls to existing legal protections. Best practice risk mitigation for your property developer clients.
Case studies
Customer success stories
Balmain and Co
IPEX platform transforms project bank account payments benchmarks for better building industry outcomes.
Nash Project Management
IPEX payments platform incorporated into tender system for greater peace of mind.
Kervale
IPEX sets new benchmarks for ethical and transparent transfer of project funds from developer to builder, subcontractors and suppliers.