New Zealand Government Provides More Security for Construction Contractors

According to the latest review of the retentions money regime, most of the construction and building sector is obeying the Construction Contracts Act. However, there is still some scope to protect the interest of subcontractors and therefore the Government has implemented some changes under the Construction Contracts Act:

  • Introduced a new offence and penalties for company directors and firms who do not comply with their responsibilities;
  • Strengthening how retention money is held to prevent firms from dipping into retention money to use as working capital;
  • Requiring those holding retention money to issue a transparency statement stating how much is being held and where.

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