Retention statements, sent on time and kept on record.
On contracts entered into or renewed after 5 October 2023 (subpart 2A), each subcontractor has to hear what you hold for them at least every 3 months, with fines of up to $50,000 per offence under s 18FD of the Construction Contracts Act 2002. Retention Track prepares the statements from your Xero bills and keeps a copy of each one sent.
| Subcontractor | Held | Status |
|---|---|---|
| Brightside ElectricalQuarterly statement · Westbank Apartments | $19,100 | Sent 26 Nov |
| Keel ConcreteQuarterly statement · Westbank Apartments | $26,200 | To send |
| Hartley PlasteringTransaction report · withheld 24 Nov | $14,860 | To send |
| Arc RoofingReleased in full · trust ended | $0 | Nothing due |
Nothing sends itself. Your team sends each one, and the exact document is kept.
What your subcontractor receives.
One statement per subcontractor, covering every contract you hold retention on: each amount and its date, the total held, and the account it's held in. Your team sends it; Retention Track keeps the exact PDF, who sent it and when.
- A transaction report for the subcontract when an amount becomes retention money (s 18FD)
- A quarterly statement per subcontractor, at least every 3 months (s 18FD)
- A worklist of who's due, and a weekly reminder until they're sent
This retention money is held on trust for you. You can inspect our records of it at any reasonable time, free of charge.
What the Act asks of whoever holds retention.
Three duties, each with its own fine, and what Retention Track does for each.
| Duty | When | Maximum penalty | In Retention Track |
|---|---|---|---|
Hold it on trust, in its own accountIn a bank account that meets the Act, or covered by a complying instrument instead. | As soon as practicable after it becomes retention money, from the first dollar | $200,000per offence, and up to $50,000 for each directorss 18D, 18DA | Each trust account or instrument mapped to the subcontracts it backs, with cover checked against retention held. |
Keep records per subcontractor, per contractEvery payment in and out, against the right ledger. | Open to the subcontractor at any reasonable time, free of charge | $50,000per offencess 18E, 18FC | A ledger per subcontract from your Xero bills, every movement with a running balance. |
Tell each subcontractor what you holdEach amount, its contract and date, the total held and where it's held. | As soon as practicable after it becomes retention money, then at least every 3 months | $50,000per offences 18FD | The transaction report and the quarterly statement, with the statutory notice, stored exactly as sent. |
Construction Contracts Act 2002, subpart 2A, for commercial construction contracts entered into or renewed after 5 October 2023. Fines are maximums. Retention Track automates the records and statements; it doesn't give legal advice.
The detail behind your retention provision.
The same records reconcile the retention you withhold to the provision account in Xero, per contract and per subcontractor. When a final release comes in, the balance is already on screen.
| Subcontractor | Held | Released | Remaining |
|---|---|---|---|
| Brightside ElectricalWestbank Apartments · end of defects 3 Nov 2027 | $38,200 | $19,100 | $19,100 |
| Keel ConcreteWestbank Apartments · end of defects 3 Nov 2027 | $52,400 | $26,200 | $26,200 |
| Hartley PlasteringNorthgate school hall · completion 12 Dec 2026 | $14,860 | $0 | $14,860 |
| Arc RoofingLakeside Medical fitout · released in full | $9,420 | $9,420 | $0 |
and 92 more, by project
Your export in, your records reconciled.
Only subcontracts still holding retention are loaded, and what onboarding needs is set out on the call.
Your subcontract export
One line per subcontract from your project system, grouped by project where it allows.
The bills against each
So the retention withheld on every progress claim is matched to its subcontract.
Linked to your provision
The control account you already have in Xero. Nothing moves out of it.
Reconciled every month
Held, released and remaining, per contract and per subcontractor, on demand.
- $20
- per subcontract, once, in NZ dollars
- Fixed
- pricing for larger volumes
- 20
- minute demo, with onboarding set out on the call
See a quarter's statements sent.
A 20 minute demo. Onboarding, and fixed pricing for larger volumes, are set out on the call.