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ARTICLE · 19 JUNE 2017

Defects bond scheme for NSW - expected deferred start date of 1 January 2018

McCullough Robertson
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Developers will be required to lodge a bond to the Department of Fair Trading to secure future defective building work.

AustraliaReal Estate and Construction
Ren Niemann
Ren Niemann
Matt Bradbury
Matt Bradbury
Michael Rochester
Michael Rochester
David Gilham
David Gilham
Goran Gelic
Goran Gelic
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WHO SHOULD READ THIS

  • Anyone involved in residential building works in New South Wales.

THINGS YOU NEED TO KNOW

  • Although not official yet, the new defects bond scheme under the Strata Management Scheme Act 2015 (NSW) may now commence 1 January 2018.

Background
Under the Strata Schemes Management Act 2015 (NSW) (Act), developers will be required to lodge a 2% (of the contract price for the building work) bond to the Department of Fair Trading to secure any future defective building work. The commencement date for the defects bond scheme will now likely be postponed from 1 July 2017 to 1 January 2018. Further details about the scheme can be found here.

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