In keeping with NSW regulations, if you are developing a new apartment building that equates to or exceeds four storeys, then you are required to pay a strata bond to NSW Fair Trading. This bond is equal to 2% of what was paid for the building or 2% of the total construction cost. As part of this new regulation, developers are obliged to engage a registered quantity surveyor for the creation of a strata bond cost report.

Need to know
The Strata Building Bond & Inspections Scheme

The Strata Building Bond & Inspections Scheme was put in place to ensure that developments are built to code and are held up to the correct standards; this deters dishonest developers from cutting corners in areas to save costs, for example, by introducing an independent, developer-appointed inspector to guarantee that the building has no defects. The eight-step scheme must be completed no longer than three years after construction has been completed.

How we can help
Preparing a strata bond cost report

To ensure that all costs are accurate, a registered quantity surveyor must be engaged to prepare a strata bond cost report. The QS must not be affiliated with the developer, any banks or financiers and must be registered with either the Australian Institute of Quantity Surveyors or the Royal Institution of Chartered Surveyors.

The cost report must include all the work conducted that relates to the contract in addition to a certificate stating that the quantity surveyor has inspected the related as-built drawings and specifications of the strata plans that relate to the report.

 

What is the bond used for?

During the inspection phases of the SBBIS, any defective work that is identified will need to be rectified, this is paid for using the strata bond. If any of the bond is left over then it reverts back to the developer once the SBBIS process is complete.

Who are we?
Nationally registered and recognised quantity surveyors

Section 94 is registered with the Australian Institute of Quantity Surveyors and can ensure your strata bond cost report is accurate, comprehensive and compliant with the Strata Building Bond & Inspections Scheme. Our independent quantity surveyors have over a decade of experience and can guarantee detailed inspections of all related documentation and materials for a speedy turnaround. Please feel free to get in touch with us by filling out the contact form below or calling 0413 953 869 for more information.

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Contact us

At section 94, we understand that you are eager to get started on your development. Whether you are an architect or owner-builder we will assist you in achieving this goal.