13/04/2017
The Construction Contracts Amendment Act has now come into effect and applies to all commercial building contracts entered into after 31st March 2017.
Interesting points to note:
- The payer must protect the retention funds withheld from the payee by holding on trust as defined under the Act or by an alternative complying arrangement.
- Retention money is not available for the payment of debts of any creditor of the payee.
- The payer must keep proper accounting records of all retention money and make those records available for inspection by the payee without charge.
- Retentions are held as security for performance and must be released when the payees obligations under the contract have been performed.
Here is a link to the act:
http://www.legislation.govt.nz/act/public/2015/0092/latest/whole.html
Here is a link to a guide prepared by Calderglen Associates Limited and jointly issued by New Zealand Institute of Quantity Surveyors, Registered Master Builders Association and Specialist Trade Contractors Federation:
https://mega.nz/ #!aJdQXKTY!98A8bhkvEZWcGMq656kfKBjWafk0ZCPMQcHU0XeVDUA
