On 1 May 2015, the Building and Construction Industry Security of Payment Amendment (Retention Money Trust Account) Regulation 2015 (“the Amendment Regulation) will take effect. This is available on the NSW Government’s legislation website (www.legislation.nsw.gov.au).
Click here for a copy of the Draft Building and Construction Industry Security of Payment Amendment (Retention Money Trust Account) Regulation 2015.
The NSW Commissioner for Fair Trading, Mr. Rod Stowe, has advised that major changes made under the Amendment Regulation will take effect on 1 May 2015, including the following:
1. For projects valued at $20 million or more, head contractors are required to hold retention money in a trust account with an authorised deposit-taking institution.
2. Head contractors are required to give notice to the Chief Executive of the Office of Finance and Services when such a retention money trust account is opened and when it becomes overdrawn.
3. Head contractors cannot withdraw from the trust account except in accordance with the terms of the relevant contract.
4. At the end of each financial year, head contractors must provide the Chief Executive with an account review report from a registered company auditor and a retention account statement.
This Regulation will apply to contracts entered into from 1 May 2015.
CTI Lawyers are able to assist you in answering any questions you may have in relation to 2015 Amendment Regulation. You can contact CTI Lawyers on (02) 9021 9699 or email your enquiry to [email protected].