Construction retention trust scheme

Construction retention trust schemeThe NSW Government is seeking to introduce a retention trust scheme for the construction industry, in an effort to reduce the impact of insolvency on subcontractors.The Property Council has made a submission to NSW Fair Trading on the Building and Construction Industry Security of Payment Amendment (Retention Money Trust Account) Regulation 2014.The Property Council has supported efforts to reduce the instance and effect of insolvency within the building and construction industry. We understand and support the intent of providing more protection for subcontractors.The statutory retention trust system proposed by the Collins Inquiry, however, was a problematic model. The new proposal is greatly improved and is likely to be more manageable for owners/principals. Please see our submission for our recommendations to Government on the proposed scheme.