What is the Process for Complying with the Strata Building Bond and Inspections Scheme?
There are many different stages for the developer to undertake in order to comply with the scheme. NSW Fair Trading offer a general process summary in 8 stages as follows:
- The developer registers their project in the NSW Planning Portal. The building bond is lodged with Fair Trading before an application is made for the occupation certificate (building bond lodgement)
- Within 12 months after building work is finished, the developer must appoint a building inspector (Inspector appointment).
- Between 15 to 18 months after the building work is finished, this building inspector will conduct a first inspection of the strata property, prepare an interim report on any defects and provide the report to relevant people (Interim inspection and report).
- Between 18 to 21 months after building work is finished the developer needs to rectify any identified defects (rectify defective building work).
- Between 21 to 24 months after finishing the building work the final inspection is done and final report provided (final inspection and report).
- If any defects are identified (remain not rectified), the cost to rectify the defective building work must be determined (determining the cost to rectify defective building work).
- Once the cost is determined, the building bond will be used to help pay for the rectification work. However, if the final report doesn’t identify any defects, the building bond will be returned to the developer (paying the building bond).
- Any money left over will then be returned to the developer. The process should be completed between 2 to 3 years after the building work was initially finished (Completion).
For more information: https://www.fairtrading.nsw.gov.au/housing-and-property/strata-building-bond-and-inspections-scheme/strata-building-bond-and-inspections-scheme
Where Does a Quantity Surveyor Become Involved?
Stage 1: The quantity surveyor carries out a Strata Building Bond Report to identify the contract price of which 2% is the bond amount (required for projects where there is no written contract or the developer and builder are connected).
Stage 2: The developer appoints an inspector that is a quantity surveyor who is on the AIQS Building Inspection Panel.
Stage 3: The appointed inspector from stage 2 carries out the inspection and interim defect report.
Stage 5: The appointed inspector from stage 2 carries out the inspection and final defect report.
Stage 6: A quantity surveyor who is on the AIQS panel of Strata Defect Rectification Costs Panel carries out a Cost Rectification Report.
Are We the Right People to Call?
Yes! Samuel Star is on the panel of both the AIQS Strata Defect Rectification Costs Panel and AIQS Building Inspection Panel, and would be more than happy to help. Get in touch with us today!