BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 32 When retention trust required

BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 32

32 When retention trust required

(1) A retention trust is required for a retention amount withheld from payment under a contract (the
"withholding contract" ) if—

(a) the withholding contract is—

(i) a head contract; or

(ii) a first tier subcontract for a head contract; or

(iii) another type of contract or subcontract prescribed by regulation; and

(b) the contracting party withholds the retention amount in the form of cash; and

(c) a project trust is required for the head contract.

(2) The requirement starts on the first day the contracting party withholds the retention amount from payment.

(3) The requirement continues until all of the retention amount has been released to the parties entitled to it under the withholding contract, regardless of any of the following changes—

(a) a variation, or any other amendment, of the contract;

(b) a change in the contracted work.

(4) This section does not apply to a retention amount withheld from payment under a contract if—

(a) the contracting party is the State, the Commonwealth, a state authority, a local government or another entity prescribed by regulation; or

(b) the contract price for the contract is at least the minimum contract price.

(5) In this section—


"head contract" means—

(a) a contract that is not also a subcontract for another contract; or

(b) a subcontract that is eligible for a project trust under section 14C or 14D .