8Retention money to be held in trust account

8 Retention money to be held in trust account

8 Retention money to be held in trust account

(1) A head contractor to whom this Part applies must—

(a) hold the retention money in trust for the subcontractor entitled to the money, and

(b) ensure that the money is paid into and retained in a trust account established with an approved ADI (a retention money trust account).

Maximum penalty—In the case of a corporation, 1,000 penalty units or, in any other case, 200 penalty units.

(2) A head contractor must ensure that the money is paid into the retention money trust account as soon as possible, but no later than 5 business days after the head contractor is required to retain the retention money.

Maximum penalty—In the case of a corporation, 1,000 penalty units or, in any other case, 200 penalty units.

(3) A retention money trust account may be established as—

(a) a separate trust account for the retention money held in respect of a particular subcontractor, or

(b) a separate trust account for all retention money held in connection with a particular construction contract of the head contractor, or

(c) a separate trust account for all retention money held in connection with 2 or more (or all) construction contracts of the head contractor.