Retention provisions will not apply to existing contracts

Posted: 9 December 2016

To clarify that new legislation relating to retention money in construction contacts will not apply to contracts signed before 31 March 2017, the government has introduced the Regulatory Systems (Commercial Matters) Amendment Bill.

New requirements that all retention money must be held on trust come into force on 31 March 2017. Clause 138 of the Bill clarifies this will apply only to contracts entered into or renewed on or after that date.

You can read clause 138 of the Regulatory Systems (Commercial Matters) Amendment Bill on the Parliamentary website.

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