Retentions regime providing protection for subcontractors, but there’s more work to be done
Published: 17 December 2019
An independent review has found that most of the building and construction sector is complying with the retentions requirements, but there is more work to be done to ensure the protection of subcontractors.
The review was conducted by KPMG and commissioned by MBIE to look into the effectiveness of the retention money provisions in the Construction Contracts Act 2002.
It indicates a strong level of compliance and reasonable levels of knowledge. However, the report findings raise some concerns around enforceable penalties, co-mingling retention monies, and a lack of guidance for construction firms.
The Minister of Building and Construction expects to make further announcements next year about work that will be undertaken to ensure subcontractors are protected.
A full copy of the review of the retentions regime is available on the Building Performance website(external link).
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