Retention requirement changes
The Queensland Building and Construction Commission Act 1991 (QBCC Act) specifies requirements for retention monies.
Changes around retentions and securities withheld under a contract and defects liability periods were introduced to protect the rights of contractors where a retention is withheld. These changes commenced on 17 December 2018.
The requirements apply to:
- all existing building contracts
- any building contracts entered into from 17 December 2018.
See more details in Part 4A of the QBCC Act and on the Queensland Building and Construction Commission website—Defects liability period and retentions.
Penalty for not releasing retention amounts
A maximum penalty of 200 penalty units or 1 year’s imprisonment may apply for failing to release a retention amount to the contracted party in accordance to the contract without a reasonable excuse.
From 1 October 2020, this penalty will also apply to the failure to release other securities, such as a bank guarantee.
- Last updated:
- 3 June 2020