Our Construction Team has been pleased to assist with the preparation of a Retention Money Guidance (Guidance), which has just been published by the Ministry of Business, Innovation and Employment (MBIE).
The Guidance aims to help industry participants understand their rights, duties, and obligations under impending changes to the retentions regime in the Construction Contracts Act 2002. The Construction Contracts (Retention Money) Amendment Act 2023, which comes into force on 5 October 2023, strengthens the existing regime and provides greater protection for retentions. The changes include deeming trust provisions, stricter requirements for holding and using retentions, new reporting obligations, and offences / penalties for noncompliance.
We and PwC assisted Peter Degerholm, who led the project, in producing the Guidance.
This is the first such publication that MBIE has produced on the retentions regime. It is expected to be a valuable resource for businesses navigating the changes and ensuring ongoing compliance.
The Guidance and MBIE’s press release can be found here:
Our previous articles on retentions include:
If you have any questions about retentions, please get in touch with our Construction Team or your usual contact at Hesketh Henry.
Disclaimer: The information contained in this news item is current at the date of publishing and is of a general nature. It should be used as a guide only and not as a substitute for obtaining legal advice. Specific legal advice should be sought where required.