WHO GETS THE MONEY?

摘要

What happens to retention money deducted by a solvent employer when a main contractor goes into liquidation? Is it to be distributed to the contractor's general creditors? Or do employers or subcontractors have rights to part or all of the retention? The answers depend on the terms of the particular contracts and circumstances. However, it may be interesting to revisit some of the cases that deal with this situation. For example, under the scheme of the 1963 JCT main contract and the FASS subcontract there were provisions that the employer under the main contract and the contractor under the subcontract should hold retention money on trust for respectively the contractor and the nominated subcontractor, subject to the employer's right to recover the cost of defective and incomplete works.