The following Construction guidance note provides comprehensive and up to date legal information covering:
Although not yet widely used in the private sector, project bank accounts have been recommended by the government for use in public sector construction projects. See Practice Note: Introduction to project bank accounts. In response, standard form documentation has been issued by JCT, NEC and PPC2000. This Practice Note looks at the approach taken and the notable features of these documents/clauses.
JCT first issued its Project Bank Account Documentation in 2010. It was republished as part of the JCT 2011 and 2016 suites, but without any textual changes. While the 2011 edition included a report on a consultation exercise, this has been replaced by guidance notes in the 2016 edition.
The documentation is designed to provide the means for setting up a project bank account, and is made up of three elements:
Project Bank Account Agreement (PBA)
Additional Party Deed (PBA/AP)
enabling provisions to be included in the building contract
It is designed to be used with all the JCT forms of contract so that identified sub-contractors receive payment by bank transfer at the same time as the contractor. The documentation could potentially be used for any size project.
The JCT PBA is entered into in the names of the employer and contractor, and also up to four sub-contractors (if additional sub-contractors need
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