The Construction Contracts Amendment Act 2015 introduced a new regime for the holding of retentions in the new Part 2, Subpart 2A of the Act (sections 18A to 18I of the Act).  There has been some uncertainty as to how the new regime will apply.  The requirement for retentions to be held on trust applies to commercial construction contracts over a yet to be determined value from 31 March 2017.  It has now been clarified that the new regime will only apply to contracts entered into or renewed from 31 March 2017.

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