This technical note has been developed as a guide for building inspectors for their interim and final inspections under the Strata Building Bond and Inspections Scheme.

Part 1: Administration

Note 1

Interim inspection

A building inspector appointed under Part 11 is to carry out an inspection of the building work, and provide an interim report, not earlier than 15 months and not later than 18 months after the completion of the building work.

Final inspection

A building inspector appointed to carry out a final inspection of the building work, and provide a final report, not earlier than 21 months and not later than 2 years after the completion of the building work.

Inspected property details – interim and/or final

1. The date range of the inspection - The inspections may take place over a period of days. Record the dates of each day onsite.
2. Weather conditions at the time of each inspection – record the weather each date onsite performing the inspections
3. Description of the property inspected - For example, residential strata building, mixed use – commercial, retail, consisting of 15 storeys, lower ground car park five levels, swimming pool, gym etc.
4. Building classification – This must comply with the National Construction Code current version as at the date of the inspection. The property may be classified as mixed purpose and each of those classifications should be recorded.

Note 2

Building work details – interim and/ or final

1. Address of the building – The physical address of the building work. The address on applications and forms may change throughout the development.
2. Strata plan number – the strata plan number as registered
3. Staged development identifier – the Development Approval may have been determined to consent to staged release.
4. Occupation certificate –
   1. Type:  interim or final
   2. issued date – what date was the occupation certificate issued.

Note 3

Owners corporation/Strata managing agency

1. Name of Owners Corporation – as registered with NSW Land Registry Services - “The owners – Strata Plan No…”
2. Name of strata managing agency – Authorised SMA
3. Owners corporation identifier – if additional reference given to the owners – Strata Plan No…
4. ABN – owners corporation
5. ACN – owners corporation (if incorporated as a company)
6. Contact name – authorised representative/agent
7. Phone number – of the authorised representative/agent
8. Email address - of the authorised representative/agent
9. Service address – see note 4

Note 4

Service address

1. Address for service - An address for service given under the Strata Schemes Management Act 2015 may be an Australian postal address, an email address or a facsimile number.
   
   For the purposes of this Part, the preferred address for service is the email address.

Note 5

Developers details

1. Entity name – The developer's name as on the construction contract
2. Entity billing name – If the developer is trading through a different entity for the billing/invoice of accounts
3. ABN – as on construction contract
4. ACN – as on construction contract (if incorporated as a company)
5. Entity service address – Note 4
6. Authorised agent’s name – the name of the developer’s authorised contact
7. Agent’s phone number – of the authorised representative/agent
8. Agent’s email address - of the authorised representative/agent
9. Agent’s service address – Note 4

Note 6

The person that organised the appointment of the building inspector. If not the developer, it will be the Secretary. The Secretary has the same meaning as Strata Schemes Management Act 2015 - section 4:

Secretary means:

• the Commissioner for Fair Trading, Department of Customer Service, or
• if there is no person employed as Commissioner of Fair Trading – the Secretary of the Department of Customer Service.

The person's details may be different between the interim report and the final report depending on whether the developer appointed the building inspector, or the obligation fell to the Secretary.

Person’s details

• Inspection requested by:
  • Developer (may be the same details in Note 5 – refer to Note 5)
  • Secretary
• Contact name:
  • Developer
  • Secretary’s delegate
• Contact phone number:
  • Developer
  • Secretary’s delegate
• Contact email address:
  • Developer
  • Secretary’s delegate
• Contact service address:
  • Developer
  • Secretary’s delegate

Note 7

Builder’s details

1. Name – the principal contractor as named on the construction contract
2. Entity billing name – If the principal contract is trading through a different entity for the billing/invoice of accounts
3. ABN – as on construction contract
4. ACN – as on construction contract (if incorporated as a company)
5. Licence/registration number (if any) – see Note 8
6. Licence/registered – state (if any) – see Note 8
7. Telephone number – the contact telephone number for the builder – office/business
8. Mobile number - the contact telephone number for the builder – mobile telephone
9. Email address – contact email address
10. Service address – Note 4

The builder’s details may be different between the interim report and the final report.

Note 8

1. Licence/registration number (if any) – in NSW, the principal contractor may not be licensed. Provide the licence number if one does exist
2. Licence/registered – state (if any) - in NSW, the principal contractor may not be licensed. Provide the State if the principal builder is licensed if one does exist

Note 9

Building inspector’s details #1

Note: If more than one building inspector performed an inspection, note as #2 etc.

1. Name of the person who performed the inspection – The building inspector’s individual name
2. Name of organisation – The building inspector’s trading entity name
3. ABN – as registered
4. ACN – as registered (if incorporated as a company)
5. Licence/registration number (if any) – see Note 8
6. Licence/registered – State (if any) – see Note 8
7. Telephone number – the contact telephone number for the builder – office/business
8. Mobile number - the contact telephone number for the builder – mobile telephone
9. Email address – contact email address
10. Service address – Note 4
11. Authorised professional association - Strata inspector panel: (SIP) Strata Schemes Management Regulation 2016 (SSMR): Clause 44(2)
12. Membership number to the SIP – membership number with the Authorised professional association listed in clause 44(2) SSMR having established the SIP

The building inspector’s details may be different between the interim report and the final report.

Note 10

Documentation

Please check that the developer has provided you with all documents listed - in section 198A of the Strata Schemes Management Act 2015 and clause 46A of the Strata Schemes Management Regulation 2016.

Section 198A provides as follows:

Within 28 days of the building inspector being appointed under this Division to inspect building work for the scheme (or within any other period prescribed by the regulations), the developer of a strata scheme must provide the following documents to the building inspector—

• a document that identifies any building defects of which the developer is aware in the building work, including any building defects considered at the first annual general meeting of the owners corporation

And

• any other documents relating to the building work that is prescribed by the regulations.

Clause 46A of the Strata Schemes Management Regulation 2016 requires a developer to give the building inspector the following:

1. a copy of the initial maintenance schedule relating to the strata scheme
2. copies of the following documents relating to the building work—
   1. the contract or contracts between the developer and the builder
   2. any specifications and any variations (including any “issued for construction” and “as-built” drawings and specifications and particulars of approved alternative solutions to meet the performance requirements of the Building Code of Australia)
   3. any written warranties
   4. any schedule of samples (being samples of fixtures, fittings, materials and finishes) approved by the developer for use in the building work
   5. any development consents, approvals or certificates granted or issued under the Environmental Planning and Assessment Act 1979
   6. in the case of building work involving an alternative solution in respect of a fire safety requirement under the Building Code of Australia—any report prepared by or on behalf of an accredited practitioner (fire safety) in relation to the alternative solution that was required in connection with an application for a certificate under the Environmental Planning and Assessment Act 1979
   7. any certificates relating to the design of the building work that was required in connection with an application for development consent, approval or certificate under the Environmental Planning and Assessment Act 1979
   8. any report obtained by the developer or builder relating to the inspection of the building work.

In this clause, a reference to an accredited practitioner (fire safety) includes a reference to a fire safety practitioner for things done before 1 July 2020.

If no, list and explain the attempts you have made to obtain all requisite documents.

If the building inspector does not receive the requested documents from the developer, requests should be made to the Secretary who may provide a building inspector with any of the documents referred to above section 198A (a) and (b) that are in the possession or under the control of the Secretary.

If the building inspector does not receive the documents, the building inspector is to document the attempts made to obtain the documents including the following details:

• Who the building inspector requested the documents from
• What date
• Contact details
• What documents
• How they attempted – for example phone, email, letter, in person

Australian Standard

Has the documentation expressed in AS 4349.2 in section 2.4 been made available to you?

If no, list and explain the attempts have you made to obtain all requisite documents including the following details:

• Who the building inspector requested the documents from
• What date
• Contact details
• What documents
• How they attempted – for example phone, email, letter, in person.

Part 2: Inspection

Note 11

Building work means the same as in the Strata Schemes Management Act 2015 – Section 190:

Building work means any work involved in, or involved in coordinating or supervising any work involved in:

(a) the construction of a building, or

(b) the making of alterations or additions to a building, or

(c) the repairing, renovation, decoration or protective treatment of a building.

Defective building work means the same as in the Strata Schemes Management Act 2015 – Section 190:

Defective building work means building work that:

(a) is residential building work done in such a way that it constitutes a breach of a statutory warranty applicable to the work under Part 2C of the Home Building Act 1989, or

(b) is building work done in such a way that it would constitute such a breach if the building work were residential building work.

Note 12

Inspection size – for interim inspection

There is one method of building inspection – the whole strata scheme approach.

Whole strata scheme approach

The parcel of a strata scheme includes all common property and all lots in a strata scheme and will be inspected for defective building work.

If the strata parcel is being completed in a staged process, it would involve the whole stage and include all of that stated above.

Note 13

The building inspector must attend the site and perform the interim and final inspection. The building inspector may commence a desk audit and other procedures prior to attending the site, however, physical attendance and observation at the site are required to satisfy interim and final inspections in Part 11 Strata Schemes Management Act 2015.

The building inspector must give at least 14 days written notice to the owners corporation and the owner and any occupier of any affected lot.

• The written notice may take the form of electronic communication and the address for service may be an electronic address such as email.
• If the written notice is manual requiring in-person delivery or via a service such as Australia Post, the building inspector should ensure the recipient receives that notice no less than 14 days before the intention to enter takes place.
• Such a written notice must include –
  • The date/s of intended access/inspection/s;
  • The period of up to an hour during which the inspection of a particular lot will commence; and
  • The likely duration of the access needed to the particular lot/s

NB: The Secretary has a suite of written notices that the building inspector can use for this purpose.

Part 3: Recording the defective building work

Note 14

Identification of defective building work

Interim report:

• Defective building work number - the identification reference for the defective building work
• Description of defective building work - brief summary of the defective building work

Does defective building work require urgent attention AND/OR is this a serious hazard?

The building inspector is required to identify defective building work requiring urgent attention due to being a serious hazard.

Have you notified the client of a present or imminent serious safety hazard?

The building inspector is required to notify the client – the developer, that the building inspector has identified defective building work requiring urgent attention due to being a serious hazard.

Final report:

Has the defective building work been rectified?

• Yes: State ‘Yes'
  • Refer to Note 15 (Photo – final report) and the matter is completed
• No: State ‘No’
  • Refer to Note 15 (Photo – final report) and continue the following steps:
  • The building inspector has identified:
    • defective building work identified in the interim report that has not been rectified, or
    • any defective building work arising from rectification of defective building work previously identified in the interim report.

Note 15

Photos

Interim

Provide photograph/s of the identified defective building work.

Final

Provide photograph/s of the:

• defective building work identified in the interim report that has been rectified
• defective building work identified in the interim report that has not been rectified, or
• any defective building work arising from rectification of defective building work previously identified in the interim report (see also Note 16).

Note 16

Details: Defective building work

Australian Standard 4349.2 Inspection of buildings Part 2: Group titled properties sets out the minimum requirements for the inspection and preparation of the report to identify defects in a group titled property. In this form, ‘group titled property’ is the building the subject of the inspection.

Australian Standard 4349.2 is required to be adhered to in performing the inspection and completing this form. In the case of inconsistency, this form is to be given precedence.

Section 3, D3 and Table A1 of the Australian Standard AS 4349.2:2018 Inspection of buildings Part 2: Group titled properties set out the requirements for identifying the inspection areas. Section 3, D3 and Table A1 are not exhaustive lists, but provide an example of the building elements/components which, as a minimum, must be inspected.

Inspection area

The visual, non-destructive inspection must include all safely accessible areas. An accessible area is as defined in AS 4349.2.

Building element/component

The visual, non-destructive inspection must include all building elements and components in safely accessible areas.

Types, defect, examples, and cause of defective building work

Table C1 in AS 4349.2 provides a non-exhaustive list of the types of defective building work, examples of defective building work and the causes (termed subsets) thereof.  Table C1 should be referred to when completing this report.

Cracking of a building element

Table B1 of AS 4349.2 provides for the categorisation of cracking of a building element (for example, cracking in masonry or plasterboard). Table B1 should be referred to when completing this report.

Equipment used to test

The building inspector should list the equipment (if any) used during the inspection which identified the defective building work.

Secondary inspector report included

(See also Note 21 to record the secondary inspector’s details)

Specialist work elements

Specialist work means the same as in the Home Building Act 1989. Consideration should be given to essential services, structural, lifts, acoustic, Fire, BCA compliance, Drainage, Communications/IT, Mechanical.

Secondary inspector may include an inspector of the specialist work, or other building work as required under the Scheme.

A secondary inspector should perform inspections outside of the appointed building inspector’s skillset. The secondary inspector must be selected, briefed and instructed by the building inspector without input from any of the other ‘parties’ (refer to Part 1). The costs will be borne by the developer. The report will be attached and be included in the building inspectors report.

Final report

The building inspector is required to carry out a final inspection. The building inspector may identify that the defective building work identified in the interim report:

1. Final report: has or has not been rectified:
   1. Final report: defective building work identified in the interim report that has been rectified
   2. Final report: defective building work identified in the interim report that has not been rectified
2. Final report: defective building work arising from rectification of defective building work previously identified in interim report
3. Final report: specify how defective building work identified in the report should be rectified.

Section 201(2)(d) of the Act requires the building inspector to provide the scope to rectify the defective building work that was identified in the interim report and remained unrectified in the final report.

Note 17

The purpose of this section is to identify the basis for which the observed building work is defective, by reference to relevant Act, Regulations, Australian Standards, or Codes. The section requires the building inspector to state the reference (for example, the Home Building Act), identify the version of the reference (for example, 1989), nominate the relevant specific provision(s) of the reference source (for example, Part 2C 18B (1)(a)-(f)), and provide comments identifying how the specific provision(s) form a basis for the observed building work being classified as defective.

Some examples of what must be considered when performing an inspection to identify defective building work for the purpose of Part 11 of the SSM Act include:

Part 2C Home Building Act 1989

• Building work identified for the purpose of determining whether a breach of statutory warranties in (18B(1)(a)-(f)), is identified as defective building work.
• Other law referred to in section 18B(1)(c) contains a warranty that the work will be done in accordance with, and will comply with, this or any other law. That includes (but is not limited to) other codes such as National Construction Code, other laws such as the Environmental Planning and Assessment Act and Regulations and Plumbing and Drainage Act 2011 and standards such as Australian Standards.

For the purposes of this section, the following is a list of samples of what is required in the report (this is not an exhaustive list and are examples only):

• Basis for the classification: Home Building Act
  • Reference version: 1989
  • Pinpoint reference: Section 18B (1)(b)
  • Basis for the item being classified as defective work comments: A warranty that all materials supplied by the holder or person will be good and suitable for the purpose for which they are used and that, unless otherwise stated in the contract, those materials will be new. The material of the building work in question is not new and is not suitable for the purpose for which it is being used.
• Basis for the classification: National Construction Code
  • Reference version: 2019 BCA Volume 1
  • Pinpoint reference: F1.7 (a) Waterproofing of wet areas in buildings
  • Basis for the item being classified as defective work comments: In a Class 2 and 3 building and a Class 4 part of a building, building elements in wet areas must – (i) be water resistant or waterproof in accordance with Table F1.7; and (ii) comply with AS 3740. The walls in the shower area are less than 1800mm above finished floor level of the shower.
• Basis for the classification: Australian Standard
  • Reference version: AS/NZS 2311:2017 Guide to the Painting of Buildings
  • Pinpoint reference: C3.3(n)(i)(ii) Paint application
  • Basis for the item being classified as defective work comments: Each coat of paint specified for use in the paint system is in accordance with this Standard, and the following qualities and properties are satisfactory: (i) The paint coatings applied have uniformity of finish, colour, texture, gloss level, opacity, hiding power, paint film thickness and that the proper number of coats of paint have been applied in the correct sequence and in accordance with the specification. (ii) The paint is free of application defects and blemishes such as paint runs, paint sags, wrinkling, fatty edges, entrained paint skins, bristles from paint brushes, human hair, dust, bare or starved painted areas, surface cracks, irregular and coarse brush marks, ladders and blistering or other discontinuities. There is paint overrun onto the adjacent panel and fatty edges.
• Basis for the classification: Other
  • Reference version: NSW Guide to Standards and Tolerances 2017
  • Pinpoint reference: 12.8 Uneven tiling
  • Basis for the item being classified as defective work comments: Except where tiles have distortions inherent in the manufacture, tiling is defective if it has joints that are not uniform, of even width, aligned or in the same plane. Large tiles could present problems when required to fall and drain to a floor outlet. The tiles in the kitchen and bathroom appear to be of uneven width and not on the same plane.

‘Other’ may include sources which do not have legislative authority and cannot be cited as a standalone/single reference source. They must be cited in addition to a legislative authority. Examples include, NSW Guide to Standards and Tolerances 2017; Guide to External Waterproofing – Balcony and Decks 2017 (Book 2) (by the Master Builders Association of NSW).

Multiple basis for classifications can be given for the one item.

Note 18

Intentionally left blank.

Note 19

Optional - Notes for potential future inspection

Note #1 – Further testing or opening up of building work recommended – TABLE ABOVE

Noting that the interim and final inspection are to be visual, non-invasive inspections, the Building Inspector may also identify building work that could be investigated more thoroughly at a later date, subject to the inclination of the future owners.

The matters to note in this table are items of building work identified by a building inspector that because of the nature of the testing involved in preparing this report, are unable to be reported as defective building work but which the Building Inspector believes may warrant the owners corporation carrying out further investigation should it wish.

Please note: Any matters listed here will not be included in the calculation of the building bond under the SSM Act.

Other – Building inspector free text

• Not a mandatory field.
• The building inspector may include further text.

Part 4: Additional matters

Note 20

Additional matters

Areas not inspected

All areas of the strata parcel are to be inspected. The building inspector must record the reason why an area was not inspected. A photograph of the visual obstruction etc. is required.

This includes areas that were not accessible at the time of inspection and whether a recommendation for access and further inspections are required.

Circumstances that prevented the inspection:

• the area required to be inspected was obstructed
• the owners corporation, any person who has exclusive use of common property, a strata managing agent, any building manager or manager of the common property and any owner or occupier of a lot must provide assistance that is reasonable to enable an inspection to be carried in accordance with Part 11 of the Act
• a person must not, without reasonable excuse, refuse a building inspector access to any part of the parcel of a strata scheme or a lot in the strata scheme, or obstruct or hinder a building inspector, in the exercise of the inspector’s functions under the Act.

Note 21

Additional secondary/specialist engagements

As per Note 16.

Specialist work elements

• Specialist work means the same as in the Home Building Act 1989.
• Secondary inspector may include an inspector of the specialist work, or other building work as required under the Scheme.
• The details of the secondary inspector that performed an inspection under the instruction of the appointed building inspector and their report are to be included in the inspection report.

Part 5: All identified defective building work summary table

Note 22

Table to summarise all identified defective building work during the interim inspection and to record whether the identified defective building work during the interim report was rectified before the final inspection. How to rectify DBW (scope) is required in this report: s.201(2)(d) of the Act.

The cost of rectification work required to correct the reported defects and a summary of the cost of rectification is not required for this report, however, it may be included if included in the scope of the engagement.