sec.67KLimits for retention amounts and securities for building contracts other than subcontracts

### sec.67K Limits for retention amounts and securities for building contracts other than subcontracts This section applies to a building contract if the contracting party under the contract is a principal or a special purpose vehicle. The building contract is subject to a condition that at any time before, under the contract, practical completion of building work is reached, the total value of the following is to be not more than 5% of the contract price for the contract— all retention amounts for the contract that are being withheld; all securities for the contract given and still held. Subsection (2) does not apply to retention amounts or securities to the extent that the retention amounts or securities are for the financial protection of the contracting party, having regard to amounts paid by the contracting party that relate to something that has not yet been installed in accordance with the requirements of the contract. The building contract is not subject to the condition mentioned in subsection (2) if— the contract— is in writing; and explains the condition; and expressly provides that the contract is not subject to the condition; and the provision of the contract that expressly provides in the way mentioned in paragraph (a) (iii) is initialled by the parties to the contract. s 67K ins 1999 No. 43 s 29 amd 2004 No. 6 s 113 sch 1 ; 2013 No. 58 s 26 (sec.67K-ssec.1) This section applies to a building contract if the contracting party under the contract is a principal or a special purpose vehicle. (sec.67K-ssec.2) The building contract is subject to a condition that at any time before, under the contract, practical completion of building work is reached, the total value of the following is to be not more than 5% of the contract price for the contract— all retention amounts for the contract that are being withheld; all securities for the contract given and still held. (sec.67K-ssec.3) Subsection (2) does not apply to retention amounts or securities to the extent that the retention amounts or securities are for the financial protection of the contracting party, having regard to amounts paid by the contracting party that relate to something that has not yet been installed in accordance with the requirements of the contract. (sec.67K-ssec.4) The building contract is not subject to the condition mentioned in subsection (2) if— the contract— is in writing; and explains the condition; and expressly provides that the contract is not subject to the condition; and the provision of the contract that expressly provides in the way mentioned in paragraph (a) (iii) is initialled by the parties to the contract. - (a) all retention amounts for the contract that are being withheld; - (b) all securities for the contract given and still held. - (a) the contract— (i) is in writing; and (ii) explains the condition; and (iii) expressly provides that the contract is not subject to the condition; and - (i) is in writing; and - (ii) explains the condition; and - (iii) expressly provides that the contract is not subject to the condition; and - (b) the provision of the contract that expressly provides in the way mentioned in paragraph (a) (iii) is initialled by the parties to the contract. - (i) is in writing; and - (ii) explains the condition; and - (iii) expressly provides that the contract is not subject to the condition; and