(11/3/2019) Kings Square Project Bank Account a WA first
Subcontractors working on the City of Fremantle’s new civic centre and library in Kings Square will be guaranteed payment thanks to the inclusion of a Project Bank Account (PBA) as part of the construction contract.
Last month the City of Fremantle and Pindan Constructions signed the contract to build the $41.3 million project.
Director of City Business Glen Dougall said the establishment of a PBA for the project was a key condition of the contract.
“We are the first local government in WA, and possibly Australia, to include the requirement for a Project Bank Account on a project like this,” Mr Dougall said.
“The PBA will guarantee subcontractors are paid within one day of the head contractor being paid, and that the head contractor can only take their portion once they have paid the subbies.
“We’re confident Pindan is in robust financial health and will meet all of its obligations, but this will ensure the local subcontractors employed on the project are safe from any potential cash flow problems and can feel more secure and confident in employing and paying their staff and suppliers.
“The PBA will improve the speed of payment for subcontractors, increase transparency in the payment process and reduce the financial stress on the subbies, their employees, suppliers and families.”
The WA government is set to expand the use of PBA’s on state government projects from 1 July this year.
The City of Fremantle’s new civic centre is an integral part of the broader $270 million Kings Square Renewal project – a joint initiative between the City and Sirona Capital.
The building was designed by the award-winning, Fremantle-based Kerry Hill Architects, and will feature a large, modern library, universally accessible toilets and change facilities, public meeting rooms, exhibition spaces and a state-of-the-art customer service and information centre.
It will also have a range of sustainability features and be one of the most energy efficient buildings of its size in Australia.
The Kings Square Renewal project, which includes the revolutionary FOMO food and retail concept and offices for 1500 state government employees, is expected to create more than 2000 new jobs and inject an estimated $358 million into the local Fremantle economy.
For more information visit the Kings Square Fremantle website.