Features Highlights
- BuildTrust can help head contractors manage retention trust accounts interlinked to multiple project trust accounts. Using Open Banking or other traditional methods, BuildTrust can connect to the statutory trust account of the head contractor and bring in bank transactions into the software.
- Under FIFOLA Bill 2024, The contracting party must deposit the retention amount withheld under the contract in a retention trust account (the deposit obligation) as follows:
(a) if the retention trust is required under 14 section 32(1)—when the retention amount is withheld;
(b) if the retention trust is required under section 32(2) and there is an existing retention trust account into which the retention amount may be deposited—within 5 business days after the contract becomes a with holding contract;
(c) if the retention trust is required under section 32(2) and there is no existing retention trust account into which the retention amount may be deposited—when the retention trust account is opened.
- Managing Retention Trust Accounts (RTA) is one of the main compliance challenges for trustees. Just imagine having one project trust account (PTA) per project but one Retention Trust Account (RTA) for multiple projects and they should be interlinked for each project, principal, head contractor and the beneficiaries!
- Complexities arise when the trustee needs one RTA for some of the projects and individual RTA per project both at the same time and yet, without manual intervention, produce the reports prescribed under the new framework. Our team at BuildTrust carefully built the solution in a way that it’s easier for people without accounting knowledge to manage these in a simplistic way.
