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Read the new guidance to understand the changes for the retention money regime.
GUIDANCE ON RETENTION REGIME CHANGES New retention money guidance helps all parties to commercial contracts understand their roles and responsibilities.
Are you up with the changes to the retention money regime that took effect on 5 October? MBIE’s Building Performance team has released new guidance to help all parties to commercial construction contracts understand their roles and responsibilities under the changes. The overall objectives of the Construction Contracts (Retentions Money) Amendment Act 2023 are to: strengthen and clarify the status of retention money as being held on trust
ensure a party withholding retention money cannot use it as working capital improve the transparency of retention money through proper accounting and regular reporting clarify what happens when a party withholding retention money goes into receivership or liquidation introduce offences and penalties for companies and other organisations and their directors (or equivalent) who fail to comply with their obligations under the retention regime.
Download and read the new Retention Money Guidance for the Construction Contracts Act 2002 at https://www.building. govt.nz/assets/Uploads/projects-and-consents/retention-money-guidance-for-construction-contracts-act-2002.pdf You can also watch a retention money webinar recording for the construction sector at www.youtube.com/watch?v=GVmwDLgc3a4
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