The new strata building bond and inspections scheme started on 1 January 2018.
The strata building bond and inspections scheme applies where a developer and builder enters into a contract from 1 January 2018.
The scheme applies to building work to construct residential or partially-residential strata properties that are four or more storeys. Buildings that are three storeys or under are covered under the Home Building Compensation Fund.
Under the scheme, developers must lodge a building bond with NSW Fair Trading equal to 2% of the contract price for residential and mixed-use high rise strata buildings, before an occupation certificate is issued.
The building bond can then be used to pay the costs of rectifying any defective building work identified in a final inspection report. If there are no defects, the bond is released in full to the developer.
The scheme applies to construction contracts signed (or where there is no contract and building work commences) from 1 January 2018.
More information on the scheme and the requirements is available on the NSW Fair Trading website.