Jeremy Coggins

Project bank accounts: the second wave of security of payment?

Purpose The purpose of this study is to identify building contractors’ views as to the need for, impact of and barriers to the use of project bank accounts (PBAs) in the UK construction industry. Design/methodology/approach A cross-sectional research study was carried out by the use of questionnaires to collect quantitative data. The population for the research was of construction professionals working as full-time employees for either main (Tier 1) or specialist contractors (Tiers 2-4). Findings Contractors consider PBAs as an effective initiative to encourage fair payment. There is uncertainty, however, as to whether PBAs will result in project cost savings. Head contractor resistance is perceived to be the biggest barrier to the use of PBAs. Adoption of PBAs in private-sector construction projects is likely to be slow. Research limitations/implications The relative infancy of PBA usage in the construction industry means that responses are largely based on awareness as opposed to experience. Nevertheless, survey data represent a snapshot of contractors’ perceptions with respect to PBAs, which may be used as a benchmark against which to compare future studies to monitor how contractors’ views and expectations have changed with time. Originality/value The survey results will be of particular interest to those international jurisdictions who are considering, or who have already embarked on, the path of trialling and/or using PBAs in the public sector.

Statutory Adjudication and the Resources Sector

Over the course of the past 19 years, construction industry payment and adjudication legislation, in one form or another, has been enacted in the UK and throughout Australia, as well as in several other international jurisdictions. This legislation has had a significant impact upon payment culture and dispute resolution within the construction industry. Although the UK, Australian and New Zealand Acts provide ‘mining exclusions’, the courts have generally given these provisions a very narrow interpretation. Consequently, there is still a good chance that many types of construction works carried out at mining sites will be covered by the legislation and, therefore, subject to statutory adjudication. This chapter gives a background to statutory adjudication, provides an overview of the statutory adjudication process, considers the key legislative differences between the jurisdictions which have adopted statutory adjudication, analyses the legislative provisions concerning the mining exclusions, and reviews the relevant judicial decisions concerning statutory adjudication in the resources sector.