Fair Trading has issued a new fact sheet that also answers some typical questions about the strata building bond and inspection scheme.
The scheme commenced from 1 January 2018 and applies to building contracts signed on or after this date.
The Strata building bond and inspections scheme is included in Part 11 of the Strata Schemes Management Act 2015 and Part 8 of the Strata Schemes Management Regulation 2016.
This scheme includes a building bond by the developer and mandatory defect inspections and reports on the development by an independent building inspector. It provides a structured, proactive process that resolves building issues quickly and cost effectively, early in the life of the building.
The scheme works by requiring developers to arrange for and lodge a building bond with NSW Fair Trading equal to 2 percent of the contract price for the building work. The building bond must be lodged before the occupation certificate is issued. The building bond secures funds (up to the amount of the bond) to be used to pay for any defective building work that’s identified in a final inspection report.
The strata building bond and inspections scheme is administered by an online portal. Developers can register to use the portal at any time before the occupation certificate is issued. Project details can be entered and documents uploaded at any time, as they become available. These documents should reflect the completed building just before any occupation certificate is issued (not the start of the build).
NSW Fair Trading has provided further information for owners corporations and strata managers. You can also access more details about the scheme on the NSW Fair Trading website.