1 May 2015 - Retention Money in NSW

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Summary

Applies to:  NSW Construction Projects above $20 million where the Contract is entered into on, or after 1 May 2015

Obligation:  Head Contractor MUST deposit Retention Money in Trust Accounts and hold that money on trust for relevant Subcontractors

Head Contractors on Projects entered into on or after 1 May 2015 in NSW with a value in excess of $20 million MUST:

  • Open one or more Trust Account(s)
  • Deposit all monies retained into the relevant Trust Account(s)
  • Hold retention money on trust for the Subcontractor from whom it was taken
  • Only withdraw money from the relevant Trust Account by cheque or EFT
  • Comply with substantial record keeping and reporting requirements
  • Undergo an annual audit at the current cost of $1,500.00

ITC can assist all stakeholders to review and update Contracts to reflect the changed regime as well as help Head Contractors to create and implement recording and reporting measures to ensure strict compliance and to avoid potential fines of up to $22,000.00.