In this episode, Jonathan Forsey, Litigation Special Counsel, speaks with Julia Flattery, Construction Partner, about the vexed issue of construction and development companies claiming retention money in the event of liquidation of other parties in the construction project chain.
Retentions are sums of money withheld to ensure the performance of a contract and are payable in one or more lump sums towards the end of a contract, once parties are satisfied no remedial work is required.
Jonathan explains constructions companies’ obligations around holding retention money and how to claim retentions. He also provides isight on the Construction Contracts (Retention Money) Amendment Bill that has passed its second reading in Parliament. The Bill amends the Construction Contracts Act 2002.