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. While trust accounts may ring-fence funds in a legal sense, there’s nothing practically stopping a distressed builder from accessing the cash (there’s already multiple documented instances of this occurring).
Benefits to requiring your builder to comply via IPEX
- Being asked to operate under IPEX conditions would still discourage any builder who may already be in financial difficulty from bidding
- A standard trust account does not provide the developer with any additional oversight or control – you are still reliant on builders’ statutory declarations. IPEX transparency allows payment issues to be identified/addressed before further payments are approved, capping developer risk
- Oversight gives ‘teeth’ to existing contractual protections, allowing the developer to act on serious or repeated breaches before losses compound
- In the event of a payment default/insolvency event, full account transaction history will also be made available to the developer
- Depending on the agreed settings for the project, there may also be additional protections/controls in place over funds already paid to the builder in the event of insolvency.
Who we work with
Use cases
Who benefits
Developers
Stop paying other developers’ bills. Deter distressed builders from tendering and protect your project against future unforeseen builder cashflow issues.
Builders
Leverage your strong financial position into more contracts and better commercial terms without sharing commercially sensitive information.
Lenders
The QS certifies progress, not payments. Payment transparency lets you validate ‘Cost to Complete’ forecasts against actual cash outflow & detect funding gaps before they become defaults.
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
Winim
Developer WINIM can now see that progress payments are going where they should; credits platform for removing key delivery risk…
Bluescope & Frasers
ASX-listed BlueScope and real estate manager Frasers Property have moved to protect $400M+ in funds set to be spent on upcoming projects behind the IPEX payments platform…
Balmain & Co
Why would a builder pro-actively offer to ‘ring-fence’ project funds & provide subcontractor payment transparency? We ask leading commercial builder Balmain & Co….