Construction update: Construction Contracts (Retention Money) Amendment Act 2023 Decoded

Construction Contracts (Retention Money) Amendment Act 2023 Decoded
Earlier in the year, we published an update discussing new requirements relating to retentions under the Construction Contracts (Retention Money) Amendment Act 2023 (Act). Given these are set to come into force in under two weeks on 5 October 2023, we thought this would be a timely reminder to any parties that are subject to these changes and that hold retentions to ensure you are in a position to comply with the Act.

Context

The Act was prompted by the collapse of Ebert Construction in 2018 and the subsequent High Court judgement that dealt with the distribution of the retentions fund. This case exposed serious flaws in the wording of the retentions provisions in the Construction Contracts Act 2002 (CCA).