Subcontractor retentions

Over the weekend Clayton Cosgrove, Labour’s commerce spokesman, released plans to add a supplementary order paper (SOP) to the Construction Contracts Amendment Bill that is currently progressing through Parliament. The SOP would require owners to put ‘progress payments’ in an independent trust account.

The Ministry for Business, Innovation and Employment is currently investigating the issue of retentions after being instructed by the Minister, who also hopes to be able to introduce a SOP to the bill that will address this issue.

It will be interesting to see the SOPs once released and whether there is support from both sides of the House of Representatives to address this issue.

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