The Construction Contracts (Retention Money) Amendment Bill, which provides greater financial protection for subcontractors, passed its first reading on the 8th of June. The Bill amends the retention provisions in the Construction Contracts Act 2002 (CCA) to provide increased confidence and transparency for subcontractors that the retention money they are owed is safe.
"Every worker and small businessperson deserves to be paid for work they have done," says Minister for Building and Construction Poto Williams. "These changes include removing the ability to co-mingle retention money with other money and assets; introducing regular reporting requirements; adding the need for contractors to confirm with the subcontractor the amount and location of the retention money being held, and harsher penalties for those who fail to comply with the retentions regime.”
