What you need to know
What is it?
A bill was introduced to Parliament on 1 June 2021 proposing changes to how retentions in construction contracts are to be dealt with.
The key proposed changes
- Retention money will have to be held separately, and can't be mingled with other funds.
- Those holding retentions will need to provide regular reports.
- Payment schedules will need to specify how much retention money is being withheld, and in what form.
- Receivers and liquidators will hold the retention money on trust and can administer the retention funds for contractors.
- Penalties are introduced for failing to comply with the retention regime, including fines of up to $200,000.
The bill will now progress through Parliament and, if passed, will come into force 6 months later.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.