Types of trust accounts | Queensland Building and Construction Commission

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There are two types of trust accounts—each protecting different contractual payment amounts:

  • project trust accounts 
  • retention trust accounts.

Project trust accounts

A project trust is an account through which project funds are received and paid – more specifically: 

  • the project owner or developer (contracting party) makes payments to the contracted party (head contractor) for work completed in accordance with the contract
  • the head contractor pays all subcontractors from this account 
  • the head contractor pays themselves from this account.

For more detailed information on operating a project trust account, refer to the guide below.

Trustee guide—project trusts (PDF, 2MB)

Retention trust accounts

A retention trust account is an account where ‘eligible’ cash retention amounts withheld from contractors are held until due to be paid.

Each trustee only requires ONE retention trust account. This one account may hold cash retention amounts across multiple projects. However, if they prefer, a trustee may have multiple retention trust accounts.

For more detailed information on operating a retention trust account, refer to the guide below.

Trustee guide—retention trusts (PDF, 1MB)


Last reviewed: 10 Sep 2021 Last published: 10 Sep 2021
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