Western Australian Current Acts

BUILDING AND CONSTRUCTION INDUSTRY (SECURITY OF PAYMENT) ACT 2021 - SECT 74

74 .         Establishment of retention money trust accounts and payments into trust accounts

        (1)         A party to a construction contract who retains retention money under the contract that is held on trust under this Part must ensure that the money is paid into a trust account established by that party with a recognised financial institution in accordance with this Part (a retention money trust account ).

        (2)         The retention money trust account must be established within 10 business days after the parties enter into the construction contract or, if the contract becomes a construction contract to which this Part applies after it is entered into, within 20 business days after it becomes a construction contract to which this Part applies.

        (3)         However, if the retention money will not be money retained from money otherwise payable but money separately paid as security, the retention money trust account must be established before the money is paid as security under the contract.

        (4)         Retention money trust accounts may be established as —

            (a)         separate trust accounts in respect of each person who may become entitled to the release of the retention money (whether under one or more construction contracts); or

            (b)         a single trust account for all retention money under 2 or more construction contracts in respect of different persons who may become entitled to the release of the retention money.

        (5)         If a single retention money trust account is established for multiple construction contracts, the trust account records must identify the contract in respect of which each payment into and out of the account is made.