Understanding Parameters of Commercial Project Bank Accounts

This research proposal aims to understand the parameters of commercial project bank accounts and their significance in improving payment procedures and security. It includes a literature review, research questions, objectives, and methodology.

PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
1. Rationale of the study
2. Significance of the study
3. Preliminary literature review
4. Research questions and objectives
4.1 Research questions
4.2 Research objectives
5. Research methodology
5.1 Research approach
5.2 Data collection method and analysis
5.3 Ethics statement
6. Team contribution
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
RESEARCH PROPOSAL SELF ASSESSMENT
You must tick the boxes of the below checklist (Replace the empty box with a ticked box for each
item you have complied with)
The research topic
 Does it summarise the main idea of my proposed research in an exciting way in
no less than10- 15words?
 Can it stand alone? Is it fullyexplanatory?
Rationale andSignificance
 DoIprovideabriefdescriptionofmyproposedresearch?
 Do I explain how the results of my research will advance the general
understanding ofthis topic?
 Do I explain how the results of my research fill a knowledgegap?
Research questions and objectives
 Do I have a formal and clear statement of my proposed research questions
and objectives?
 Are my research questions aligned with the rationale and relevant
reviewedliterature?
 Do my research questions and objectives connect? Are they logical,
researchable,achievable, andethical?
Preliminary Literaturereview
 Does my literature review justify my research questions?
 Does my literature review identify gaps, shortcomings, and limitations in existing
researchgiving context to mystudy?
 Do I demonstrate a thorough and current understanding of the peer-reviewed
literaturerelating to mytopic?
Research approach, methods, ethics and
limitations.
 Do I explain the approach I intend to use to solve the challenge in my study?
Is it explicitand well thoughtout?
 Are both my research approach and methods tied to my research questions and
objectives?
 Does both my approach and methods show an understanding of
relevantreviewedliterature?
 Are my procedures well organized and clearlydescribed?
 Do I discuss how confidentiality of participants and their responses will
CQUniversity | PPMP20015Research Proposal Template 2

PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
be maintained?(if applicable)
 Have I explained the scope boundaries and exclusions of my research?
References, Appendices and Presentation
 Have I provided cover page and abstract as per requirements?
 Have I had my work checked by Studiosity and ALC before submission?
 Is my language clear enough and free from typos and grammatical errors?
 Do I provide a list of cited references that are current andrelevant?
 Am I using Harvard style in the reference list and in-text referencing?
 Have I followed all other instructions for submissions?
 Have I provided all documents needed under appendices as well as the
hyperlink of shared folder?
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
Compliance Statement
No. Comments/Suggestion Response
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
Research Project Topic
Understanding the parameters of project bank accounts in the context of commercial projects in
Melbourne.
Abstract
The paper mainly reflects on the research that mainly focuses on the understanding of the
parameters of commercial project bank account. It is found that the main aim of the research
project is to review a number of journal articles in order to reflect the importance of understanding
the parameters of commercial project bank account. It is found that due to the use of commercial
project bank account, the payments to the customers can be made easily without delay and this
method also helps in maintaining the security of the money. It is found that in order to get accurate
result, research uses primary data collection method and uses survey in order to analyse the
importance of parameters understanding. The sample size of 30 is used for gathering data for the
research work. Moreover, the paper also reflects on the project management plan that generally
includes project schedule, risk management matrix as well as stakeholder management plan for
managing the research project effectively. In addition to this, the paper also showcases on the
Gantt chart that is created for reflecting on the schedule.
1. The rationale of the study
The paper mainly showcases on the understanding of the different types of commercial project
bank accounts. It is found that as per the suggestion of the government, there are mainly unusual
tier for the supply chain members including the contractors and sub-contractors and as a result
they need to wait for around 100 days for receiving their payment that further damages the cash
flow and generally creates issues in the operation of the business (Babai and Syed 2018). It is
found that in order to resolve the issues as well as challenges, the government suggested to utilize
project bank accounts. It is found that for commercial projects, commercial bank accounts are used
where a trusted account is generally utilized for facilitating payment for speeding up the entire
payment procedure and for lowering the challenges that occurs in the absence of project bank
accounts.
Commercial project bank account is considered as one of the rings that is mainly fenced with the
bank account in which the entire payment is generally made directly as well as properly with the
main contractors as well as members of the supply chain. In addition to this, it is found that the
PBA generally have proper trust related status that generally held monies in order to pay for the
different beneficiaries (Conforto et al. 2016). The entire account is mainly held by the various
trustees who are generally related with the authority of the contracting as well as the main
contractor.
It is identified that the project bank accounts in context to commercial projects are generally
included within the various conditions of the contract in which the government contract generally
helps in estimating the value in excess of f £1 million which mainly include proper element of the
subcontracting. Moreover, the application PBA (Project bank account) policies in context to
maintenance contractors are not considered to be appropriate in context to payment. Moreover, it
is expected such that this type of cases is generally considered to very much rare (Njanike 2018).
The project bank accounts are generally managed with the help of the trustees and in order to
protect the fund properly within the project bank account and additionally, it is found that there will
be a trustee from either a contracting authority or from the main contractor.
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
This research is undertaken on the identification of the parameters of commercial project bank
account as the utilization of commercial project bank account not only helps in resolving the late
payment related issues but also provide numerous advantages that is mainly associated with the
commercial project accounts as they are helpful in outweighing any type of disadvantage and thus
the PBA generally depends on the majority of various industry commentators (Uchenna, Evans
and Stephen 2015). In the absence of use, it is found that it is considered as one of the most likely
reflective that is mainly reluctance to the members who are mainly associated with the construction
industry that is moving the new territory at a time where the market related conditions are generally
considered to be very much uncertain about the building information related modelling.
It is found that from this particular research it is analysed that proper understanding about the
parameters of the commercial project bank account. Proper knowledge as well as understanding of
the parameters are generally required for making sure that proper understanding helps in utilizing
the commercial project account that further helps in improving the credibility as well as security of
the money. Moreover, it is found that the issue that is mainly associated with non-payment or late
payment can get resolved and the contractors who are associated with the commercial project
generally a number of benefits due to the use of project bank accounts. It is analysed that 60% of
the respondents generally agree that the problem of late payment get resolved due to the
commercial project bank account whereas 10% of the respondents generally disagrees with the
statement.
The paper mainly reflects on project that showcases the importance of understanding the
parameters of commercial project bank accounts. It is found that the project bank accounts are
generally utilized as an alternative payment mechanism that utilizes a dedicated trust account in
order to facilities payment directly from the lead of the contractor who are mainly involved within
the project. The utilization of commercial project bank accounts are very much beneficial and they
generally help in providing high degree of insolvency protection and generally helps in speeding
the payment procedures for the parties that lower done the entire supply chain. Moreover, it further
helps in increasing the accountability as well as transparency of the entire payment procedure that
is mainly used.
2. Significance of the study
The paper mainly reflects on the research that mainly focuses on the understanding of the
parameters of commercial project bank account. It is found that the main aim of the research
project is to review a number of journal articles in order to reflect the importance of understanding
the parameters of commercial project bank account. It is found that due to the use of commercial
project bank account, the payments to the customers can be made easily without delay and this
method also helps in maintaining the security of the money. It is found that in order to get accurate
result, research uses primary data collection method and uses survey in order to analyse the
importance of parameters understanding. The same size that is used is around 30 for the entire
research work. Moreover, the paper also reflects on the project management plan that generally
includes project schedule, risk management matrix as well as stakeholder management plan for
managing the research project effectively. In addition to this, the paper also showcases on the
Gantt chart that is created for reflecting on the schedule that is needed for properly understanding
the parameters which are associated with the commercial project management.
3. Preliminary literature review
Historically it is found that the unusual tier within the supply chain members needs to wait
for around 100 days in order to receive payment that further damages the entire cash flow
procedures as well as generally creates a negative impact on the entire business. On the other
hand, is found that the that mechanism of late as well as non-payment are generally followed by
the project team and due to which they get frustrated. It is found that in order to resolve the
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
problem, the government generally suggested to use project bank account. It is opined by
Bradbury et al. (2019) that project bank account is generally emerged as one of the means that
helps in enabling faster payments with the help of the construction supply chain such that the
payments can be made within 5 days from the date that is given. As per the government for
undertaking commercial projects, commercial bank accounts are required to be used which are
further being ring fenced in which the entire payments are generally made directly as well as
simultaneously with the help of all the different parties that are generally associated with the supply
chain. The funds that are mainly present within the account should be paid to the different
beneficiaries who are mainly the members of the supply chain.
According to Njanike (2018), as the supply chain members does not have to wait for the
process of payment as they generally get the payment directly that further helps in ensuring the
security as well as certainty of the payment. In addition to this, it is found that proper reduction
within the need of borrowing as well as financing credit also get reduced. Moreover, it is found that
the disputes that occurs within the project due to delay in payment also get minimized. This does
not generally create impact on the procedures that generally values as well as helps in certifying
the payment. It is stated by Yanagawa and Yamaoka (2019) commercial project bank account is
one of the tools that is mainly designed for implementing the various payment related procedures
within a project. It is found that understanding about the parameters of commercial project bank
account are important for using the commercial bank accounts properly. The utilization of the
project bank account in context to commercial projects are helpful in protecting the upstream
insolvency related risks that further helps in enabling that the project money generally flows
properly in the downward direction from the client with the help of the supply chain at a very much
faster rate. On the other hand, it is stated by Russ (2016) that the clients mainly help in triggering
the utilization of PBAs on the specified project that generally requires the main contractor for
signing up for further utilization.
It is found that proper understanding about the commercial project bank account
parameters are generally necessary for triggering its utilization. It is quite necessary to set up
proper ring-fenced bank account with proper trust status. Both the trustees as well as the account
holders will be considered as either the contract or acting as one of the clients with the trustees. In
order to properly set up the trust, different parties need to properly enter into a trust deed that is
generally linked with the PBA that generally needs proper negotiation as well as term drafting. In
addition to this, the trust deeded is considered as one of the agreements that generally contains
proper provisions for the proper administration of the PBA (Babai and Syed 2018). In addition to
this, shorter additional trust deeds will later require from the suppliers if they are considered to be
beneficial from the direct payment with the help of the commercial project payment. Moreover, it is
found that the project bank account is generally set up for the utilization of single as well as large
projects. After the initiation of the project, the parties generally operate the contract with the help of
the entire payment mechanism within a normal way. The client who generally pay the entire funds
of the project within the PBA for making sure that the due payments which are generally made
available are generally the sub-contractors. Provisions including these generally requires proper
negotiation as well as appropriate drafting within the contract document at the outset.
According to Szopinski (2016), PBAs promote compliance generally helps in setting out the
principles that is under the Prompt payment code that is quite transparent which further makes in
measuring the payment related timescales. Prompt payment generally helps in promoting the cash
flow that generally helps in underpinning successful business that further helps in encourages
investment. It generally helps in avoiding the various payment related disputes and therefore the
cost that is mainly associated with proper late payments including the payment relate credit such
that the time that lost for chasing payment in context to financial as well as emotional cost that is
associated with insolvency. It is stated by Shrestha (2016) that PBA scheme is mainly utilized
within the project for encouraging the sub-contractors for submitting the lower bids in context to the
prompt payment that further helps in minimizing the cost that is associated with the project. In
addition to this, it is found that PBA generally help the parties for focusing related with the project
that is much more efficient. Moreover, PBAs are generally supported by the various groups that
generally helps in representing the sub-contractors including the specialist engineering contractor
group.
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
It is found that the main challenge that I associated with generally attracts the project team
for properly encouraging the contractors for properly using them. The main experience is that the
contractors generally wants to prefer not to get instigated. The downside that is associated with
thee constrictor generally helps in preventing the utilization of various lengthy terms in order to
provide the opportunity within the supply chain of the entire project (Bulitia et al. 2018). In addition
to this, PBAs generally helps in providing security that is associated with payment within the supply
chain that are generally performed in order to properly focus on the delivery of the end project. I is
found that it will not be possible for changing the main contractors that are associated it the project
that generally experienced issues with the project bank accounts as well as major contractors are
not properly using them.
According to Bradbury et al. (2019), commercial project bank account is generally
set up so that the main principal advantage over the contractors as well as rest of the project team
is that they are generally concerned with the insolvency that is mainly associated with the
contractual chain such that the payment can still be made to the various project team. It is found
that the developers generally get benefited as the risk that is linked with the payment of the
suppliers as well as subcontractors where it is found that the contractors generally fail to remit the
entire payment procedure which generally becomes very much insolvent as it generally falls away.
On the other hand, it is stated by Uchenna, Evans and Stephen (2015) that the commercial project
bank accounts generally help in speeding up the entire procedure of payment and generally assists
in reducing the payment related abuse that is mainly for lowering down the supply chain on which
late payment generally create huge impact against the different types of tight margins. The main
reason that is associated with the payment does not generally creates any type of flow down for
the entire contractual chain instead of focusing the project team who generally party to the project
bank account who are mainly paid directly from the PBA effectively.
It is opined by Yanagawa and Yamaoka (2019) that management of cash flow is
considered to be very much transparent against the project bank account such that the contractor
as well as supply chain generally gets the benefit from the money certainty in advance to the data
which the entire fails due. However, one of the most important benefit that is achieved from the
PBA is by the smaller contractors who mainly have to tolerate compounded payment related
periods. Making payment to the parties at the lower level; is often helpful in extending the payment
periods as onward payment will generally need to made based upon the receipt of the funds from
the higher up the entire chain (Babai and Syed 2018).
According to Russ (2016), it is mainly estimated by the government that is they generally
implemented the entire board then the commercial project bank account is generally helpful in
delivering up to 2.5% of the saving in context to the cost related with the construction projects. It is
found that the cost savings are mainly associated with the virtue of the entire fact that the members
of the supply chain does not need to properly chasse for the entire payment and therefore it mainly
helps in minimizing the administration related changes (Bulitia et al. 2018). This is done such that
the requirement that is associated with the finance related lengthy credit period are generally
considered to be reflective for the entire long payment chains from the employment to the
contractor such that subcontractor to the suppliers mainly get eliminated effectively.
It is stated by Szopinski (2016) that the project bank account is generally helpful in reducing
the control of the bank or the employer that is present over the project such that id the entire
money is generally tied with the PBA then it will not able to be used for the entire purposes. In
context to the mechanism of payment, it is found that the employers generally need to make proper
deduction for the entire defective work that that it will be ensured that the project bank account
arrangements generally help in allowing to act upon different types of deductions. If proper
deduction is generally justified by the virtue, there the main contractor related error may generally
require much more money such that the project bank account helps in enabling the contractors as
well as suppliers for making the entire payment.
According to Njanike (2018), although the utilization of PBA is generally helpful in providing
greater certainty around the entire payment them it does not helps in providing guarantee that the
correct payment which will either be made or generally eliminate payment related disputes. It is
found that the unusual procedures that is mainly associated for making payment until it generally
gets adhered about the queries of the contractor so that the employer can generally uphold the
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
payment in order to properly set up the sums which might can due. However, it is found that in
order to get the benefit is very much important to understand the parameters that are mainly
associated with the commercial project bank account.
It is stated by Yanagawa and Yamaoka (2019), if proper trust is generally present then the
employer need to become much more insolvent so that it generally can properly constituted the
PBA such that it does not generally include the employers based assets such that they must be
protected from the hands of various creditors. It is found that if trust is not present in context to the
contractors such that the insolvency related with the contractor mainly needs to rank as one of the
unsecured creditors which will further helpful in receiving little if anything by the way while return on
the debit (Babai and Syed 2018). Presently, determination of whether the trust is generally present
in context to the balance of PBA such that the insolvent of the company is very much difficult. It
generally can cause the trust to fail such that the paramount importance as well as trust
mechanism is mainly approved by the entire trust related specialist for making sure that it will
remain effective upon any type of insolvency.
4. Research question(s) and objectives.
The research questions are:
 What are the issues that are mitigated due to the utilization of commercial bank accounts
while undertaking commercial projects?
 Why understanding about the parameters of commercial project bank account are
necessary?
4.1 Definition of key terms
The research objectives are:
 To determine the issues that are mitigated due to the use of commercial project bank
account
 To identify the importance of understanding the parameters of commercial project bank
account.
5. Research Methodology
5.1 Research Approach
An approach is mainly defined as one of the studies on a topic that is mainly used such that the
format that is generally needed for properly conducting the study is generally gets revealed. It is
found that in order to get proper understanding about the parameters of commercial project bank
accounts deductive approach is mainly utilized (Mackey and Gass 2015). Deductive approach is
mainly used as it is one of the procedures that helps in describing the practical applications of
various types of theories that are generally required to be studies for gaining access about the
content of the research. Moreover, it is found that the utilized deductive approach is helpful in
building proper theory with appropriate specifications as well as concept of data analysis.
5.2 Data collection methods and analysis
It is found that in the present study, primary data collection method is mainly used in order
to get proper understanding about the parameters that are associated with the commercial project
bank accounts. It is found that part from the various sources of literature that is analysed,
information about the importance of parameters that are related with the commercial project bank
accounts are reflected. The primary data collection many includes survey that are mainly
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
undertaken in order to get the view of the various construction companies about the significance of
the research project that is mainly undertaken.
Data analysis technique:
In this research study, quantitative data is mainly utilized for undertaking the research. It is
found that quantitative data are the statistical data that are mainly used for recoding various types
of data of large sample sizes (Ledford and Gast 2018). The main reason of undertaking the
quantitative data analysis technique so that the view of the users of commercial project bank
account can be received for showcasing how the parameters of commercial project bank account
are useful.
Population and sample:
Population is generally defined as the number of individuals who generally get either affected or
not affected by the entire research process content. In the present research project, the customers
of the banks are generally determined as the population for the entire study (Fletcher 2017).
Moreover, it is not possible for the researcher to consider very customers therefore few
percentages of the customers are generally considered within the entire procedure.
Sampling technique:
Sample is generally considered for understanding the parameters of commercial project bank
accounts in order to reflect the significance of commercial project bank accounts. It is found that
the sample for the customers was generally the simple random probability sampling technique
where no criteria for the procedure of selection is generally considered. It is found that by using the
online survey, the customers are generally asked for their participation so they can rate the
questions provided based on Likert’s scale and according to which rating should be provided
between 1 to 5.
Sample size: It is found that for undertaking the quantitative research techniques, 30
customers of the commercial bank accounts are considered and are properly interacted with the
help of the questionnaires. Thus, it is found that the sample size for undertaking the entire research
study will be 30.
Data analysis:
Question 1: Gender
Option Number of responses Total respondents % of responses
Male 12 30 40%
Female 18 30 60%
Gender
Female Male
Figure 1: Gender
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
From the above table, it can be analysed that 40% of the survey respondents are Male
whereas 60% of the respondents are female. Thus, it can be analysed that more percentage of
female took active participation within the survey.
Question 2: Age
Age Number of responses Total respondents % of responses
Above 25 12 30 40%
Between 30-40 12 30 40%
Above 40 6 30 20%
40%
40%
20%
Age group
Above 25 Between 30-40 Above 40
From the above analysis, it is found that 40% of the respondents are from the age limit of
25 whereas 40% of the respondents are between the age limit of 30-40. However, it is found that
above 20% of the survey respondents belong to the age limit of above 40.
Question 3: How much do you agree that the use of commercial project bank accounts is
helpful in ensuring the certainty as well as security of the payment?
Options Number of
responses
Total respondents % of responses
Strongly disagree 0 30 0%
Disagree 3 30 10%
Neutral 10 30 33%
Agree 17 30 47%
Strongly agree 0 30 0
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
10%
33%
47%
Benefits of commercial project bank account
Strongly disagree Disagree Neutral
Agree Strongly agree
From the above analysis it is found that 47% of the respondents generally agree that the
use of commercial project bank accounts is helpful in ensuring the certainty as well as security of
the payment whereas 10% of the respondents disagrees with the statement. In addition to this,
33% of the respondents remains neutral.
Question 4: How much do you agree that proper understanding the parameters of
commercial project bank account are important?
Options Number of
responses
Total respondents % of responses
Strongly disagree 0 30 0%
Disagree 6 30 20%
Neutral 6 30 20%
Agree 18 30 60%
Strongly agree 0 30 0%
20%
20%60%
Importance of parameter understnading in
commercial project bank account
Strongly disagree Disagree Neutral
Agree Strongly agree
From the above analysis, it can be analysed that 60% of the respondents generally agrees
that parameter understanding about the commercial bank account projects are important where
20% of the respondents disagrees with the statement. In addition to this, 20% of the respondents
remains neutral with the statement.
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
Question 5: How much do you agree that the commercial project bank account is helpful in
providing a degree of insolvency by increasing transparency of the payment procedure?
Options Number of
responses
Total respondents % of responses
Strongly disagree 3 30 10%
Disagree 3 30 10%
Neutral 6 30 20%
Agree 18 30 60%
Strongly agree 0 30 0%
10%
10%
20%60%
Tranparency of commercial project bank account
Strongly disagree Disagree Neutral
Agree Strongly agree
Question 6: How much do you agree that the problem of late payment as well as non-
payment to the contractors get solved due to the use of commercial project bank account?
Options Number of
responses
Total respondents % of responses
Strongly disagree 0 30 0%
Disagree 3 30 10%
Neutral 6 30 20%
Agree 18 30 60%
Strongly agree 3 30 10%
10%
20%
60%
10%
Solving the problem of late payment due to the
use of commercial project bank account
Strongly disagree Disagree Neutral Agree Strongly agree
From the above analysis, it can be analysed that 60% of the respondents generally agree
that the problem of late payment get resolved due to the commercial project bank account whereas
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PPMP20015: Assignment 2 - Research Proposal
Unit Coordinator: Dr Samer Skaik
10% of the respondents generally disagrees with the statement. In addition to this, 20% of the
respondents remains neutral whereas 10% strongly agrees
5.3 Ethics Statement
It is found that during the research methodology process, a researcher must follow the code
of conduct that further helps in determining the right as well as wrong set of behaviours that is
needed to be adopted. The ethical considerations that are required to be followed within the project
are reflected below:
Involvement of the respondents: The researchers must not get pressurized the
customers of the commercial project bank account so get involved within the survey.
Data application: It is found that the commercial data associated with the bank account
should be leaked otherwise it will create a number of ethical issues as well as challenges.
Respondent’s anonymity: Mental as well as physical harassment should not be given to
the respondents who actively participate within the survey.
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