The Urban Taskforce’s submission to NSW Fair Trading regarding the Strata Schemes Management Amendment (Building Defects Scheme) Bill 2018 which proposes changes to improve the identification of building defects and clarify the role of the building inspector.
“Under the current 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. The ‘contract price’is based on the value of contract for the construction of the entire building. For apartment buildings, this is appropriate. However, for mixed use buildings, using the full contract price places an unnecessarily large financial burden upon developers and does not achieve the objective of ensuring a sufficient (not excessive) bond is held to cover defects associated with the residential component of the development.”
Read Full Submission Here: 20180515 – NSW Fair Trading – Strata Building Bond and inspection Scheme