Stage 6 of the Strata Building Bond and Inspections Scheme is agreeing to the cost of the outstanding defects and is therefore only applicable if outstanding defects that have been identified in the previous Stage 5: Final Inspection and Report. This stage must be completed between 2 to 3 years following the date of the Occupation Certificate.
There are 2 ways the developer can go about this stage:
Option 1: Deed of Agreement
The developer and owners corporation reach an agreement regarding the cost to rectify defective work. They make a deed of agreement along with an application to the Secretary to release the agreed amount from the building bond. This must be carried out within 30 days of receiving the final report.
If the deed of agreement and application is not submitted within 30 days, the Secretary will move to Option 2.
Option 2: Cost to Rectify Defects Report carried out by a member of the AIQS Defect Cost Rectification panel.
Secretary organises a Cost to Rectify Defects Report carried out by a member of the AIQS Defect Cost Rectification Panel, like ourselves. The cost of the report will be shared equally by the developer and owners corporation.
The amount specified in the report is then released from the building bond to the owners corporation to pay for the rectification works. If the amount is greater than the building bond the whole amount of the building bond will be paid to the owners corporation.
How the building bond is paid is explained in the following blog about Stage 7.