Construction Contract Retentions
Are you RETENTION READY for 5 October 2023?
Commercial construction contracts with retentions entered into from the 5 October 2023 require specific conditions to be met as set out in the Construction Contracts (Retention Money) Amendment Act 2023.
Some key points from the above Act:
- Retention funds will be required to be held in an Independent Trust bank account
- New reporting requirements
- Possible fines of up to $200,000 – $500,000 for non- compliance.
* Check out this handy Fact Sheet from Ford Sumner / TradieLaw to ensure your retention is fully compliant.
Commercial construction contracts with retentions entered into from the 5 October 2023 require specific conditions to be met as set out in the Construction Contracts (Retention Money) Amendment Act 2023.
Some key points from the above Act:
- Retention funds will be required to be held in an Independent Trust bank account
- New reporting requirements
- Possible fines of up to $200,000 – $500,000 for non- compliance.
* Check out this handy Fact Sheet from Ford Sumner / TradieLaw to ensure your retention is fully compliant.
Setting up your own Trust Account can cost > $1,000 plus ongoing administration costs.
With IPromise, for just $20 p/m you can manage up to 5 retentions. No $$ limit.
How Does It Work?
It takes less than 10 minutes to register with IPromise AND send a Retention Quote to a Subcontractor or customer.
WHY USE IPROMISE FOR RETENTION PAYMENTS?
- Free 90-Day Trial
- Affordable pricing
- Fully automated
- Transparent
- Saves valuable Time & Money
- BNZ Secure Trust Account
- Payment control is handled only by the Main Contractor and Subcontractor
- Check out this handy Fact Sheet from Ford Sumner / TradieLaw to ensure your retention is fully compliant.
How IPromise Works
IPromise have partnered with leading Wellington legal firm Ford Sumner, and Tradie Law
Ford Sumner Lawyers were keen supporters of this legislation being passed. Speak to them now or visit their Tradie Law website for further information. IPromise is proud to partner with FSL who can assist you with IPromise setup and working with retention payments. If you require legal assistance or advice on this retentions issue, we recommend reaching out to Ford Sumner Lawyers at: https://www.fsl.nz/contact/
Onboarding with IPromise is very easy. The team at IPromise are also always willing to provide a Demo and can assist with Registrations directly.
“Ford Sumner Lawyers are committed to fairness in the construction industry. That’s why we championed this important legislation change. Now implementation is key and by partnering with IPromise we can offer our current and potential clients a retention solution that is easy, affordable and compliant.”
Jaesen Sumner and Sarah Churstain
The team at Ford Sumner have also recently written an article that delves into the legal complexities relating to this law change from 5 October, which you can read here.
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