  
  
S/C/N/11 42 
14 November 2023 
(23-7653) Page: 1/2 
Council for Trade in Services  Original:  English  
 
  
NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE  
GENERAL AGREEMENT ON TRADE IN SERVICES  
The following notification from the delegation of New Zealand , dated 10 November  2023, is being 
circulated to the Members of the Council for Trade in Services.  
 
_______________  
 
 
1  MEMBER NOTIFYING:  
New Zealand  
2  NOTIFICATION UNDER ARTICLE:  
Article III:3 of the General Agreement on Trade in Services  
3  DATE OF ENTRY INTO FORCE:  
5 October 2023 
3.1  Duration:  
Indefinite  
4  AGENCY RESPONSIBLE FOR ENFORCEMENT OF THE MEASURE:  
Ministry of Business, Innovation and Employment  
5  DESCRIPTION OF THE MEASURE:  
The Construction Contracts (Retention Money) Amendment Act 2023 amends the Construction 
Contract Act 2002 to further strengthen the retention money regime.   
 
Amendments include:  
 
• clarifying that retention money is automatically held on trust by the head c ontractor once the 
contract allows it to be withheld from the subcontractor,  
• removing the ability to mix retention money with other money and assets, and  
• requiring that retention money held as cash must also be held separately in a bank account with 
prescr ibed ledger accounts.  
 
The head contractor – or Party A in the legislation – must record information on retentions and 
provide the subcontractor – or Party B – with regular information on retention money, including 
where the money is held and the amount.  
 
Changes have been introduced to streamline the process when a head contractor goes into 
receivership/liquidation. The Act also sets offences and penalties for companies and in some cases, 
directors, who fail to hold retention money on trust. The Ministry o f Business, Innovation and 
Employment's (MBIE) Chief Executive will monitor compliance, investigate and enforce such S/C/N/1142  
 
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  offences. MBIE also has the responsibility to provide information and education to the sector on the 
regime.  
 
6  MEMBERS SPECIFICALLY AFFECTE D, IF ANY:  
None 
7  TEXT AVAILABLE FROM:  
https://www.legislation.govt.nz/act/public/2023/0012/36.0/whole.html   
 
Or from:  
 
www.mbie.govt.nz   
 
Ministry of Business, Innovation and Employment  
15 Stout Street  
Wellington 6011  
PO Box 1473  
Wellington 6140  
New Zealand  
 
Phone: (+64 4) 495 7200  
Email: info@mbie.govt.nz   
 
__________  