For developers

Strata building bond and inspections scheme

The Strata building bond and inspections scheme (The Scheme) commenced on 1 January 2018.

It applies to building work for building contracts entered into from 1 January 2018, or if there is no contract, it applies to building work commenced from this date.

Developers are required to lodge a building bond that is 2% of the contract price for the building work, with NSW Fair Trading (the Secretary). The building bond secures funds (up to the amount of the bond) to pay for the costs of rectifying defective building work.

Building work means, building work that is carried out on a residential or partly residential (mixed-use) strata building, that is four or more storeys. The building work must also be carried out for the purposes of, or contemporaneously with, the registration of a strata plan or a strata plan of subdivision of a development lot.

Mixed use purpose could be, for example, a development that includes a combination of residential, retail, commercial, hotel, but it must include residential.

The Scheme does not apply to building work if the work is subject to the requirements to obtain insurance under Part 6 of the Home Building Act 1989 (Home building compensation cover). For example, the building is three storeys or less.

Strata building bond inspection scheme stages

Summary of the key requirements for developers

The following is a summary of the key requirements for the developer. More detail is explained below.

  • Building bond lodgement,
  • Appoint a building inspector with approval of the owners corporation,
  • Arrange rectification of identified building defects (if any), and
  • Reach agreement with the owners corporation as to the cost to rectify the defective building work

Key terms

For more information about the key terms in bold, please refer to the key terms section on the Strata building bond and inspections scheme page.

How will the Scheme be administered?

Strata building bond and inspections scheme portal

The strata building bond and inspections scheme is administered by an online portal (the portal) and is used for stage one of the Scheme – Building bond lodgement.

A guideline has been issued to assist developers with registration and using the portal.
Login to the portal

The portal will be used for stage one only, to:

  • facilitate the building bond lodgement process
  • enter information about the strata development, builder and owners corporation
  • upload a copy of the building bond and other documents
  • pay the lodgement fee
  • for notifications to the developer and owners corporation (using the email addresses provided by the developer), and
  • Secretary’s actions – issue of stage one approvals, requests for further information or documents, and for refused lodgements.

The developer can access the portal at any time as information and documents become available. However, these documents should reflect the completed building just before any occupation certificate is issued (not the start of the build).

The portal will give each project a unique identifier number which must be included in the building bond by the issuing institution. The unique identifier number is the project number issued by the portal for the strata development. It will be in the following format: PN- followed by 9 digits ie. PN-000000001.

Email communication

The Strata building bond and inspections scheme is administered by electronic communications. All correspondence required for the Scheme will be via email.

The developer should ensure the email addresses provided in the portal are up to date and correct.

Written notices suite

For stages 2 to 8 of the Scheme, the Secretary will provide a package of all written notices required under legislation to the developer. The written notices will be emailed by the Secretary after the bond lodgement has been approved by the Secretary in the portal.

The written notices suite may be prepopulated for the developer, using the information in the portal provided by the developer when they lodge the building bond. These written notices can be used by the developer to complete their obligations under the Scheme. The owners corporation will receive a written notice at this time to independently verify details of their contact person and building details with the Secretary.

Process for The Scheme

The following is a general overview of what is required within each stage of the Strata building bond and inspections scheme.

Developer’s guide to comply with legislative obligations

Important: The guideline below has been simplified and for full obligations and mandatory requirements, reference should be made to legislation and Secretary’s guidelines.

1. Building bond lodgement

From 1 January 2018, a developer is required to lodge a building bond with the Secretary.

This legislative obligation is required when:

  • a developer enters into a contract with a builder for building work on a residential (including mixed use) strata scheme of four or more storeys, on or from 1 January 2018, or
  • where there is no contract, it applies where building work commences on or from 1 January 2018, for building work on a residential (including mixed use) strata scheme of four or more storeys.

The amount secured by a building bond must be equal to 2 percent of the contract price of the building work (at a time just before the Developer makes application for the occupation certificate).

A copy of the building bond must be lodged in the portal and the original building bond must be delivered to and approved by the Secretary before the occupation certificate is issued for the strata scheme. Any occupation certificate (OC) which allows people to occupy the building – whether conditional or interim OC must not be issued before the building bond has been approved by the Secretary.

A penalty may apply if a developer does not lodge the building bond and receive approval from the Secretary before the issue of the occupation certificate for the strata scheme.

To assist developers comply with their requirements and minimise any possible delays in applying for an occupation certificate, stage one has been divided into two segments:

  1. Preparation, and
  2. Lodgement.

A. Preparation

Issuing the building bond and the portal

The developer (not the builder) is responsible for obtaining the building bond from an Approved issuer and lodging it with the Secretary. The time it takes to get a building bond from an approved issuer may vary, so this process should start as early as possible.

The building bond can be a bank guarantee or ‘bond’ and must contain the project number issued by the portal.

To obtain the project number (ie. PN-000000001), the developer must register, log in to the portal and then create a new project for the strata development.

Although the amount secured by the building bond is calculated later - at a time just before the developer applies for the occupation certificate, it may assist minimising possible delays to obtain your project number from the SBBIS portal and provide it to the Approved issuer as soon as possible.

For further details regarding Approved issuers of building bonds, refer to key terms on the Strata building bond and inspections scheme page.

The building bond must comply with the Secretary’s published guideline below.

Note, the original building bond must be delivered to the Secretary before it can be approved through the portal. The delivery options for the building bond are also included in the guideline.

View the Building bond for Strata building bond and inspections scheme guideline (DOCX, 213.41 KB)

The contract price

The amount to be secured by a building bond is to be 2% of the contract price for building work. It is the total price paid under all the applicable contracts for the building work as at a time just before the Developer makes application for any occupation certificate (OC) which allows people to occupy the building – whether condition or interim OC. For example, at practical completion - not the contract price before or at the start of construction - to include all variations, additions and price fluctuations etc.

Refer to key terms on the Strata building bond and inspections scheme page.

Cost report

If there is no written contract for the building work, or the parties to the building contract are connected persons, the contract price for building work is to be the price set out in a cost report prepared by a quantity surveyor who is a member of the Australian Institute of Quantity Surveyors or the Royal Institution of Chartered Surveyors, and is not connected to the developer or the builder.

A cost report prepared by a quantity surveyor must include the costs set out in Part 8 of the Strata Scheme Management Regulation 2016 and be accompanied by a certificate by the quantity surveyor that they have inspected the as-built drawings and specifications for the strata plan to which the report relates.

This requirement should be considered early in the process to minimise potential delays.

Building bond lodgement, information and documents

The developer should start to gather the information and documents that are also required to be entered and uploaded to the portal, before they are ready to upload a copy of the building bond. This includes:

Information:

  • the strata plan number (if available),
  • the street address of the building,
  • the name and address of the principal certifying authority for any building work,
  • developer, including:
    • address for service,
    • email address for service; and
  • owners corporation for the strata scheme (if initial owner or new owners), including:
    • address for service,
    • email address for service.

Documents:

If there are multiple versions of any document, the version in existence at the time just prior to application for occupation certificate should be uploaded:

  1. a copy of the building bond
  2. a copy of any document relevant to determine the contract price to calculate the amount secured by the building bond (including the quantity surveyor’s cost report, if applicable)
  3. a copy of the contract or contracts for the building work to substantiate the contract price between the developer and the builder
  4. a copy of specifications and any variations for the building work
  5. a copy of any written warranties relating to the building work
  6. a copy of any approved alternative solutions to meet the performance requirements of the BCA and any schedule of work that is non-conforming
  7. a copy of all ‘issued for construction’ and ‘as-built’ drawings and specifications relating to the building work
  8. a copy of any schedule of samples (fixtures, fittings, materials and finishes) relating to the building work
  9. a copy of any development consents, approvals or certificates granted or issued under the Environmental Planning and Assessment Act 1979 and relating to the building work
  10. a copy of any report regarding alternative solutions for a fire safety requirement under the BCA required with an application for a certificate under the Environmental Planning and Assessment Act 1979
  11. a copy of any certificates relating to the design of the building work that were required for development consent, approval or certificate under the Environmental Planning and Assessment Act 1979
  12. a copy of any report obtained by the developer or builder relating to the inspection of the building work
  13. a copy of Building Code of Australia compliance certificates by each subcontractor for any work carried out by the subcontractor
  14. a copy of any other information or documents in support of your bond lodgement or information or documents required by the Secretary.

B.    Lodgement

Lodgement of building bond –  the original building bond, information and documents

Prior to the issue of the occupation certificate, the developer is required to complete the lodgement process in the portal.

To submit your building bond lodgement to the Secretary:

  • complete the lodgement form (the data fields in the ‘Project’ and ‘Bond’ tabs in the portal) - ensure all mandatory data fields are completed and complete all other data fields where the information is available,
  • upload a copy of the building bond,
  • upload a copy of the other required documents – refer to Regulation and document list above,
  • pay the lodgement fee of $1,500, and
  • deliver the original building bond to the Secretary. There are two ways to deliver the building bond and these are included in the Secretary’s Building bond guideline and schedule.

Providing a copy of the building bond in the portal facilitates the verification process by the Secretary. The receipt of the original building bond is necessary to complete the validation and verification process. The building bond cannot be approved until the Secretary receives the original building bond from the developer.

The Secretary will then consider the developer’s request to approve their building bond. If any further information or documents are required, the Secretary will notify the developer by email. The Secretary’s process times are included in the Secretary's Building bond guideline and schedule (see above for guideline).

After the Secretary completes the validation of the original building bond, and approves the building bond process in the portal, the developer can move to the next stage - stage 2 – Inspector appointment.

2. Inspector appointment

A developer must appoint a building inspector to carry out the interim and final inspections and produce the interim and final reports.

Appointing the building inspector: interim inspection

The building inspector must be appointed within 12 months of the issue of any occupation certificate (OC) which allows people to occupy the building – whether conditional or interim OC, if the initial period of an owners corporation of a strata scheme ends within that 12 months.

The initial period ends when the owners corporation changes from being the original owner of the land (ie. the developer) to the actual owners of the lots. Go to the starting the owners corporation page for more information on the initial period.

Note: If the initial period does not end within 12 months of the issue of the occupation certificate, the developer must notify the Secretary who will then arrange the building inspector (see the Secretary’s guideline below for appointing building inspectors – by the Secretary).

A building inspector can be nominated and appointed to carry out inspections and produce reports for the Strata building bond and inspections scheme, if they are a member of a strata inspector panel.

Strata inspector panels

The building inspector must be a member of a strata inspector panel (SIP).

A strata inspector panel can only be provided by an authorised professional association, as listed in clause 45 of the Strata Schemes Management Regulation 2016. A strata inspector panel (SIP) may be established by any of the following:

(a)  the Housing Industry Association

(b)  the Master Builders Association of New South Wales

(c)  the Australian Institute of Building

(d)  the Australian Institute of Building Surveyors

(e)  the Australian Institute of Building Consultants

(f)  the Institute of Building Consultants Inc

(g)  Engineers Australia

(h)  the Australian Institute of Architects

(i)  the Association of Accredited Certifiers.

Each of these associations will have their own processes and criteria to determine if a person is competent to perform building inspections and produce reports for the purposes of the Scheme. Specific information should be obtained directly from the above professional associations.

Inclusion on a SIP means that an authorised professional association has determined the qualified person is competent to perform building inspections and produce reports for this Scheme.

To access the webpages of the authorised professional associations above, please refer to the Strata inspections panel on the Strata building bond and inspections scheme landing page.

Selecting the building inspector

Each SIP will have a register of members who are qualified to be building inspectors for the purposes of the Scheme. This register will be available on each association’s website and contain the details and experience of each building inspector, including their contact details.

The developer should check each association’s website for the SIP register of building inspectors. The developer selects their building inspector from one of these SIP’s.

The developer accesses the association’s website for the SIP register of building inspectors, selects a building inspector and makes their due diligence enquiries with that building inspector. Once satisfied with the selection of their building inspector, the developer must propose them to the owners corporation.

Proposed building inspector and disclosures to the owners corporation

To propose the building inspector, the developer will email the owners corporation and provide information about that building inspector. A written notice is available for this process.

The proposal will also include any disclosures or connected person interests (if any) between the developer and the proposed building inspector.

The proposed building inspector will also email the owners corporation and let them know of disclosures and connected person interests (if any) with the developer. A written notice is available for this process.

Appointing the building inspector

The developer can only appoint a building inspector if the owners corporation approves the appointment.

The owners corporation must provide written notice by email to the developer and the Secretary within 14 days of approving or refusing the appointment of the building inspector.

If the owners corporation rejects the proposed building inspector, the developer has the option to repeat the process until either the 12 months expires or the owners corporation approves an inspector.

The Secretary has published a guideline regarding the appointment of building inspectors by developers and owners corporations (DOCX, 306.07 KB).

If, for any reason, the developer fails to successfully appoint a building inspector within 12 months, they must provide written notice to the Secretary by email within 21 days after the end of the 12 months. The Secretary will then arrange the appointment of a building inspector and notify the developer and owners corporation.

If the Secretary arranges the appointment of the building inspector, the approval of the owners corporation is not required.

The developer must pay all inspector costs, such as the costs of obtaining an inspection and report, even when the inspector is arranged by the Secretary. Additional costs include the Secretary’s service fee to arrange the building inspector.

Objection by an owner of a strata scheme lot

An individual owner of a strata scheme lot may object to the owners corporation approval of a building inspector, for any reason. The individual owner must lodge their objection with the Secretary within 14 days after the owners corporation approves the appointment. A written notice is available for this requirement.

The Secretary will consider the objection and if appropriate in the circumstances arrange the appointment of another building inspector. The Secretary will give written notice of the appointment to the developer and owners corporation. If the decision is to not appoint an alternative building inspector, the Secretary will notify those concerned of the decision, by email.

The Secretary has published a guideline regarding the process to arrange the appointment of  building inspectors by the Secretary (DOCX, 328.1 KB).

Appointing the building inspector: final inspection

Within 18 months of the issue of any occupation certificate (OC) which allows people to occupy the building – whether conditional or interim OC, the developer will arrange for the same building inspector who prepared the interim report to carry out the final inspection and provide the final report. This arrangement is required later in the process and is explained at stage 5 below.

3. Interim inspection and report

Interim inspection

The building inspector carries out their first inspection - the interim inspection, between 15 and 18 months after the issue of the occupation certificate. The building inspector must attend the site to perform the interim inspection.

The interim inspection is carried out to identify any defective building work for the strata scheme.

The building inspector will arrange with the owners corporation a suitable time to attend the property to conduct the interim inspection of the strata scheme.

The building inspector must give at least 14 days written notice to the owners corporation and any owner or occupier of any affected lot of their intention to enter any part of the parcel of the strata scheme.

The owners corporation, any person who has exclusive use of common property, a strata managing agent, building manager or manager of the common property, and any owner or occupier of a lot, are required to provide reasonable access and assistance and not to obstruct or hinder a building inspector.

Interim report

The building inspector will also complete a report, known as the interim report, between 15 and 18 months after the occupation certificate is issued.

The interim report records the identified defective building work (if any), and if reasonably practicable, identify the cause of that defective building work. The building inspections do not provide a level of compliance, but do identify defective building work, to which Part 11 of the Strata Schemes Management Act 2015 applies.

Defective building work is to be identified at the time the interim inspection is performed. The final report must not contain matters that relate to defective building work not identified in the interim report, other than arising from rectification of defective building work identified in the interim report.

Destructive and/or invasive testing is not required for the purpose of this Scheme.

Defective building work is to be identified by visual inspection and use of equipment/techniques that do not involve destructive testing. The inspection is to include the removal of any object designed to be moved/opened whether or not it requires a specialist to remove/open any object. It includes any test whereby the object or assembly can be returned to its prior state without the replacement by a new component.

A secondary inspector should perform inspections outside of the appointed building inspector’s skillset. Any additional specialist/expert reports, must be included as part of the interim report.

The building inspector must produce the interim report in the form approved by the Secretary. The Secretary has published a guideline and a combined interim and final inspection report of the building inspector (DOCX, 252.53 KB).

The building inspector must give a copy of the interim report to the Secretary, owners corporation, developer and builder (responsible for defective building work identified in the report) no more than 14 days after completing the report and before 18 months after the issue of the occupation certificate.

If there is no defective building work identified in the interim report, the developer can apply to the Secretary that a final report is not required.

If the application is approved by the Secretary, the interim report becomes the final report. The building bond can then be returned to the issuer of the building bond (lodged by the developer) - two years after the date of building work completion (not at 18 months when the interim report is provided by the building inspector).

If defective building work was identified in the interim report, the developer should arrange with the builder responsible for the defective building work, to rectify it before the final inspection is carried out. See stage 4 below – Rectify defective building work.

4. Rectify defective building work

Rectification of defective building work may occur at any time after the completion of building work. However, if the interim report has identified defective building work, the rectification period is likely to be between 18 and 21 months after the issue of the occupation certificate, but before the final inspection starts.

The developer is responsible for arranging with their builder the rectification of the identified defective building work recorded in the interim report of the building inspector.

If the original builder is not available, the developer is required to arrange for another builder to do the rectification work.

The builder must give at least 14 days’ written notice to the owners corporation, the developer, the owner and any occupier of any affected lot, that they need to enter the lot, for or in connection with rectifying defective building work.

After providing the required notice, the builder may enter the lot only at a time that is reasonable, or at a time agreed with the owner or occupier of the lot. A person cannot unreasonably refuse a builder access to any part of the strata scheme if the builder has given required notice.

5. Final inspection and report

The final inspection and report stage covers two points in time after the issue of any occupation certificate (OC) which allows people to occupy the building – whether conditional or interim OC:

  1. within 18 months – appointment of the building inspector, and
  2. between 21 and 24 months – carrying out of the inspection and production of the report.

  1. i.    Within 18 months after the issue of the occupation certificate

Appointing the building inspector: final inspection

The developer will arrange for the same building inspector who prepared the interim report to carry out the final inspection and provide the final report.

The developer must give the Secretary written notice of the arrangement within 14 days after making the arrangement.

If the original building inspector is not available, the developer must give the Secretary written notice of this, within 14 days after becoming aware that they are not available.

The Secretary will appoint the building inspector when:

  • the original building inspector who prepared the interim report is not available,
  • the developer applies by email to the Secretary to appoint an inspector, or
  • the Secretary becomes aware that the developer has not complied with the requirement to appoint a building inspector for the final inspection.

If the Secretary appoints the building inspector, the approval of the owners corporation is not required.

The developer must pay for all building inspector costs, such as the costs of obtaining an inspection and report, even when the inspector is appointed by the Secretary. This includes the Secretary’s service fee to appoint the building inspector.

The Secretary has published a guideline regarding the appointment of building inspectors by the Secretary DOCX, 328.1 KB.

  1. Between 21 and 24 months after the issue of the occupation certificate

Final inspection

The final inspection must be conducted between 21 and 24 months after the occupation certificate is issued. The building inspector must attend the site to perform the final inspection.

This inspection is to inspect whether the defective building work identified in the interim report has been rectified.

The building inspector will arrange with the owners corporation a suitable time to attend the parcel to conduct the final inspection of the strata scheme.

The building inspector must give at least 14 days written notice to the owners corporation and any owner or occupier of any affected lot of their intention to enter any part of the parcel of the strata scheme to conduct the final inspection.

The owners corporation, any person who has exclusive use of common property, a strata managing agent, building manager or manager of the common property, and any owner or occupier of a lot, are required to provide reasonable access and assistance and not to obstruct or hinder a building inspector.

Final report

The building inspector will also complete their report, known as the final report between 21 and 24 months after the issue of the occupation certificate.

The final report will record:

  • any defective building work identified in the interim report that has not been rectified
  • identify any defective building work arising from the rectification of defective building work previously identified in the interim report, and
  • specify how the defective building work identified in the report should be rectified.

The final report must not contain matters that relate to defective building work not identified in the interim report.

The building inspector must produce the final report in the form approved by the Secretary.

The Secretary has published a guideline and a combined interim and final inspection report of the building inspector (DOCX, 252.53 KB).

The building inspector must give a copy of the final report to the Secretary, developer, owners corporation and builder (responsible for the defective building work identified in the report) no more than 14 days after completing the report and before 24 months after the issue of the occupation certificate.

If there is no defective building work identified in the final report, the bond is released in full to the issuer of the building bond (as lodged by the developer). See stage 7 below - Paying the building bond.

If defective building work is identified in the final report, the cost to rectify that building work must be determined. See stage 6 below – Determining the cost to rectify defective building work.

6. Determining the cost to rectify defective building work

If there is defective building work identified in the final report, the cost to rectify that work must be determined.

Two-step process:

Step 1: The developer and the owners corporation are required to make an agreement regarding the cost to rectify defective building work. The result needs to be provided to the Secretary within 30 days after the final inspection report has been distributed by the building inspector.

Agreement reached by both parties:

  • both parties reach an agreement on the cost to rectify the identified defective building work, and
  • each party provides the deed of agreement and makes application to the Secretary to make payment of the agreed amount from the bond.

The whole or part of the amount secured by the building bond is realised and claimed. See stage 7 below – Paying the building bond.

If the Secretary does not receive the deed of agreement within 30 days after the final report has been distributed by the building inspector, the Secretary will arrange an appropriately qualified person to determine the cost to rectify the defective building work – step 2 below.

Step 2: The Secretary will arrange for an appropriately qualified person to determine the cost to rectify defective building work.

Agreement not reached by both parties:

If the parties do not agree on the cost to rectify the defective building work, the Secretary will arrange for an appropriately qualified person to determine the cost to rectify defective building work.

The Secretary has published a guideline regarding the determination of the cost to rectify defective building work by appropriately qualified persons DOCX, 328.1 KB.

The summarised process is:

  • the Secretary will arrange for an appropriately qualified person to determine the cost to rectify the defective building work identified in the final report, for example a quantity surveyor who is a member of the Australian Institute of Quantity Surveyors or the Royal Institution of Chartered Surveyors, and
  • the developer and the owners corporation will equally share the cost of the appointment of this person, and
  • the appropriately qualified person will provide their determination in their report.

The building bond is then realised and claimed based on the amount determined by the appropriately qualified person. See stage 7 below - Paying the building bond.

7. Paying the building bond

The whole or part of the amount secured by the building bond may be claimed or realised by the Secretary between two and three years after the date of completion of the building work.

If the cost to rectify the defective building work is less than the amount secured by the building bond, that amount is paid to the owners corporation. If the cost to rectify the defective building work is more than the amount secured by the building, the whole amount of the building bond is paid to the owners corporation.

The developer must take any necessary steps to enable the Secretary to claim or realise an amount of building bond given by the developer and required to be paid.

The Secretary may refuse to claim or realise an amount, or reduce the amount payable, if the Secretary is satisfied that the developer or the builder responsible for defective building work was unreasonably refused access to the strata parcel for the purpose of rectifying that work.

The Secretary will provide the owners corporation, the developer and the builder 14 days written notice of any proposed payment from the building bond.

The payment of a building bond may be triggered by the following events:

Consent

The whole or part of the amount secured by a building bond may be realised or claimed by the Secretary for payment to the owners corporation, with the consent of the developer, on application to the Secretary by both the owners corporation and the developer, no earlier than two years after the date of completion of building work and before three years.

Interim report – no identified defective building work

A building bond must be claimed or realised, two years after the date of completion of building work or within 60 days after the final report on the building work is given to the Secretary by the building inspector, whichever is the later.

In this instance, if the developer is not required to arrange for the final report, the interim report becomes the final report.

For example, if the interim report becomes the final report 18 months after the completion of the building work, the building bond may be claimed or realised at the earliest two years after the date of completion of building work for which the building bond was given. The building bond will not be paid at 18 months and 60 days after the date of completion of the building work, because two years is the later. The whole of the amount secured by building bond will be returned to the approved issuer.

Final report – no identified defective building work (rectified)

A building bond must be claimed or realised, within 60 days after the final report on the building work is given to the Secretary by the building inspector. The whole amount secured by the building bond will be returned to the Approved issuer.

Final report – identified defective building work (not rectified)

A building bond must be claimed or realised, within 60 days after the final report on the building work is given to the Secretary by the building inspector.

Stage 6 requires the determination of the cost to rectify defective building work. When agreement is reached (step one), the Secretary will provide requisite notice to the parties of the proposed payment and claim/realise the whole or part of the amount secured building bond.

If agreement is not reached, (step two), once the Secretary receives the report from the appropriately qualified person, the Secretary will provide requisite notice to the parties of the proposed payment and claim/realise the whole or part of the amount secured by the building bond.

8. Completing the process

The process should complete not more than 3 years after the date of issue of any occupation certificate (OC) which allows people to occupy the building – whether conditional or interim OC for the building to which it applies.

Variation of time requests

The developer, owners corporation or building inspector, may have made application to the Secretary to vary the times for reports and other matters. This may result in the length of the Scheme being extended.

Reviewable decisions

Certain decisions of the Secretary are reviewable decisions. This may result in the length of the Scheme being extended. Reviewable decisions are included under key terms.

Tribunal orders (NCAT)

A developer, the Secretary or the owners corporation can apply to the NSW Civil and Administrative Tribunal for an order specifying the contract price for building work to determine the amount to be secured by a building bond. This may result in the amount of the building bond, provided by the developer, being varied.

Feedback

During any stage or at the completion of the process, the contact person for each participant in the Scheme may provide feedback by email to stratabond@finance.nsw.gov.au.

Closing the process

Once the administration of the Scheme is complete, the information and documents relating the building bond will be stored in accordance with NSW Government record keeping policy.

Owners corporation obligations

The owners corporation must within a reasonable time, use any money they receive from the building bond to:

  • fix the defective building work identified in the final report of the building inspector, this includes the common property or any other part of the parcel, or
  • for costs related to the rectification.

After the defective building work is rectified, the owners corporation must repay to the developer any amount of a building bond that is not required. The owners corporation must give the developer written notice of the completion of the rectification of the defective building work.

Penalties may apply for failure to comply with this requirement.

This does not prevent the owners corporation from retaining any part of a building bond and using it for any purposes, with the consent of the developer.

 
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