arXiv:2508.11709v1 Announce Type: cross Abstract: The rapid integration of Generative Artificial Intelligence (GenAI) into higher education presents both opportunities and challenges for assessment design, particularly within Project-Based Assessment (PBA) contexts. Traditional assessment methods often emphasise the final product in the PBA, which can now be significantly influenced or created by GenAI tools, raising concerns regarding product authenticity, academic integrity, and learning validation. This paper advocates for a reimagined assessment model for Project-Based Learning (PBL) or a capstone project that prioritises process-oriented evaluation, multi-modal and multifaceted assessment design, and ethical engagement with GenAI to enable higher-order thinking. The model also emphasises the use of (GenAI-assisted) personalised feedback by a supervisor as an observance of the learning process during the project lifecycle. A use case scenario is provided to illustrate the application of the model in a capstone project setting. The paper concludes with recommendations for educators and curriculum designers to ensure that assessment practices remain robust, learner-centric, and integrity-driven in the evolving landscape of GenAI.