NZ – Changes to retention money requirements
The Government has announced changes to retention money requirements to give subcontractors confidence that they will be paid the retention money they are owed should a head contractor’s business fail.
The retention provisions in the Construction Contracts Act 2002 were put in place to protect retention money owed to subcontractors in the event of a business failure, and to ensure retention money withheld under construction contracts is responsibly managed.
On 30 March 2023, the Construction Contracts (Retentions Money) Amendment Act 2023 was passed by Parliament. The changes in the Amendment Act aim to strengthen and clarify protection for subcontractors’ retention money and make it easier for subcontractors to access retention money without a court order, in the event of a company’s insolvency.
Click here for full article that contains:
- Key changes to the retention money provisions in the Construction Contracts Act
- Compliance with the retention money provisions
- Date changes must be complied by
- Where to find further information
