In an
article published in December 2016, I outlined some of the key
features of the new Building Defect Bond Scheme (the Scheme)
introduced under the new Strata Schemes Management Act 2015 (NSW).
The Scheme requires (amongst other things) developers to lodge a
bond with NSW Fair Trading that is equal to 2% of the contract
price for construction of residential and mixed use high rise
strata buildings.
The Scheme was to apply to building works carried out on new
residential and mixed use high rise strata buildings from 1 July
2017, and in instances where building works are exempt from
requiring Home Owners Warranty Insurance.
However, the Electronic Transactions Legislation Amendment
(Government Transactions) Bill 2017 (NSW) introduced into the
NSW Legislative Council on 24 May 2017, appears to have
deferred the proposed commencement of the Scheme until 1
July, 2018. The explanation provided for the deferment of
the commencement date (as contained in the Bill's
