Regulatory Systems (Commercial Matters) Amendment Bill on Retentions Regime
Parliament, in introducing the Regulatory Systems (Commercial Matters) Amendment Bill this week, has now sought to clarify that the new retentions regime provided for in the Construction Contracts Amendment Act 2015 (due to come into force on 31 March 2017) will only apply to contracts entered into or renewed on or after 31 March 2017, unless the parties agree.
See sections 137 and 138 of the Bill below:
Part 4 Building and housing
137 Principal Act
This Part amends the Construction Contracts Act 2002 (the principal Act).
138 Section 11A amended (Application of this Act: savings provisions relating to Construction Contracts Amendment Act 2015)
After section 11A(2), insert:
(3) Subpart 2A of Part 2 (which relates to retention money) does not apply to a construction contract that was entered into before 31 March 2017 unless—
(a) the contract is renewed for a further term on or after 31 March 2017 (in which case that subpart applies only in relation to retention money withheld during the further term); or
(b) the parties agree that subpart 2A will apply.