CONCEPTUAL FRAMEWORK OF A PROJECT BANK ACCOUNT (PBA) BLOCKCHAIN PAYMENT APPLICATION FOR THE CONSTRUCTION INDUSTRY

Abstract

The UK government published a guidance document in 2012 stipulating the use of project bank accounts (PBA) to promote fair and prompt payment practices in the construction industry. PBA utilises a project-specific escrow bank account to provide greater cash flow auditability and mitigate cascading payments down the supply chain. However, PBA is bureaucratic to manage and costly to set up. This paper will investigate whether blockchain can be used as an alternative system for executing PBA payments.