Saible Retention Trust Accounts

What are they?

Retention Trust Accounts protect construction project monies set aside for retentions. These are the portion of a contractor's payment withheld until work is completed and any defects rectified.

A Retention Trust Account is a separate bank account where retention monies are held by a trustee for the benefit of the contracted parties. This protects the funds from being used in the project owner's main business and protects them for contractors if the owner becomes insolvent.

Benefits

Select a Retention Trust Account benefit to find out more

Retention monies are securely ring-fenced, giving both you and your contractors peace of mind.

Each project's funds are clearly separated in their own bank account.

Protecting contractor funds fosters confidence and enhances partnerships and project outcomes.

Anticipate upcoming legislation by adopting trusted retention protection now.

How it works

An independent, not-for-profit company called
‍Construction Trustee Limited acts as trustee to hold and protect funds on behalf of beneficiaries.

Retention funds for a specific project are deposited into that project’s dedicated trust account, not the project owner's general business or personal account.

Each construction project has its own dedicated Retention Trust Account held at Griffin Bank Ltd. Monies for that project are held separately and are never mixed with any other project's monies.

Funds can only be withdrawn in accordance with the terms of the contract and relevant legislation. Typically a portion is released at practical completion and the remainder after the defects liability period has ended.

A key benefit is that the retention funds are not considered part of the account holder's assets, and are protected from other creditors if the account holder becomes insolvent.

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