Kue-S-Services Pty Ltd

What is The NSW Strata Building Bond and Inspections Scheme?

The NSW Strata Building Bond and Inspections Scheme began on 1 January 2018. It applies to building contracts executed from this date – or where there is no written contract – building work that commences from this date to construct residential or partially-residential strata properties of four or more storeys.

Buildings that are three storeys or under are covered under the Home Building Compensation Fund.

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 building's life.

Developers must arrange for and lodge a building bond with NSW Fair Trading equal to two percent of the building work's contract price. The bond must be lodged before the issuance of the occupation certificate.

The building bond secures funds (up to the amount of the bond) to be used to pay for any defective building work that is identified in a final inspection report.

Suppose there is no written contract for the building work between parties to the building contract. In that case, an independent Quantity Surveyor must identify the costs contract price for the building works in a cost report.

If the parties cannot agree on the costs of the rectification of defects, the Secretary (Dept. of Fair Trading - NSW Strata Management Defects Scheme) will appoint a member of the AIQS to decide (in respect of rectification costs).

KUE-S SERVICES PTY. LTD. is registered and included on the AIQS Strata Defects Inspection Panels – New South Wales and can assist you with the report.

Please submit your queries to sales@kue-s.com for a quotation.