sec.32When retention trust required

### sec.32 When retention trust required A retention trust is required for a retention amount withheld from payment under a contract if— the contract is a withholding contract at the time the retention amount is withheld; and the retention amount is withheld by the contracting party in the form of cash. Also, a retention trust is required for a retention amount withheld from payment under a contract if— the contract was not a withholding contract at the time the retention amount was withheld but the contract has since become a withholding contract; and the contract is a first tier subcontract; and the retention amount was withheld by the contracting party in the form of cash; and the retention amount had not been released to the parties entitled to it at the time the contract became a withholding contract. The requirement starts, or is taken to have started, on the first day the contracting party withholds the retention amount from payment. The requirement continues until all of the retention amount has been released to the parties entitled to it under the withholding contract, regardless of any of the following changes— a variation, or any other amendment, of the contract; a change in the contracted work. This section does not apply to a retention amount withheld from payment under a contract if— the contracting party is the State, the Commonwealth, a state authority, a local government or another entity prescribed by regulation; or the contract price for the contract is at least the minimum contract price. In this section— withholding contract means— a project trust contract that is— a head contract; or a subcontract that is eligible for a project trust under section 14C or 14D ; or a project trust subcontract for a project trust contract mentioned in paragraph (a) . s 32 amd 2018 No. 17 s 176P sub 2020 No. 24 s 63 amd 2022 No. 11 s 25 ; 2024 No. 14 s 38 (sec.32-ssec.1) A retention trust is required for a retention amount withheld from payment under a contract if— the contract is a withholding contract at the time the retention amount is withheld; and the retention amount is withheld by the contracting party in the form of cash. (sec.32-ssec.2) Also, a retention trust is required for a retention amount withheld from payment under a contract if— the contract was not a withholding contract at the time the retention amount was withheld but the contract has since become a withholding contract; and the contract is a first tier subcontract; and the retention amount was withheld by the contracting party in the form of cash; and the retention amount had not been released to the parties entitled to it at the time the contract became a withholding contract. (sec.32-ssec.3) The requirement starts, or is taken to have started, on the first day the contracting party withholds the retention amount from payment. (sec.32-ssec.4) The requirement continues until all of the retention amount has been released to the parties entitled to it under the withholding contract, regardless of any of the following changes— a variation, or any other amendment, of the contract; a change in the contracted work. (sec.32-ssec.5) This section does not apply to a retention amount withheld from payment under a contract if— the contracting party is the State, the Commonwealth, a state authority, a local government or another entity prescribed by regulation; or the contract price for the contract is at least the minimum contract price. (sec.32-ssec.6) In this section— withholding contract means— a project trust contract that is— a head contract; or a subcontract that is eligible for a project trust under section 14C or 14D ; or a project trust subcontract for a project trust contract mentioned in paragraph (a) . - (a) the contract is a withholding contract at the time the retention amount is withheld; and - (b) the retention amount is withheld by the contracting party in the form of cash. - (a) the contract was not a withholding contract at the time the retention amount was withheld but the contract has since become a withholding contract; and - (b) the contract is a first tier subcontract; and - (c) the retention amount was withheld by the contracting party in the form of cash; and - (d) the retention amount had not been released to the parties entitled to it at the time the contract became a withholding contract. - (a) a variation, or any other amendment, of the contract; - (b) a change in the contracted work. - (a) the contracting party is the State, the Commonwealth, a state authority, a local government or another entity prescribed by regulation; or - (b) the contract price for the contract is at least the minimum contract price. - (a) a project trust contract that is— (i) a head contract; or (ii) a subcontract that is eligible for a project trust under section 14C or 14D ; or - (i) a head contract; or - (ii) a subcontract that is eligible for a project trust under section 14C or 14D ; or - (b) a project trust subcontract for a project trust contract mentioned in paragraph (a) . - (i) a head contract; or - (ii) a subcontract that is eligible for a project trust under section 14C or 14D ; or