26 Jun Strata Building Defect Bond Scheme Deferred Until 2018

Strata Building Defect Bond Scheme Deferred Until 2018

NSW Fair Trading has officially deferred the building defect bond scheme. The scheme will now only apply to construction contracts signed (or where there is no contract and building work commences) from 1st of January 2018.

Fair Trading announced the delay was to ensure that all procedural and professional requirements supporting the scheme could be in place before commencement. This relates to the procedures surrounding the building inspections and processes to support bond lodgement.

The scheme applies to building work to construct residential or partially-residential strata properties that do not require coverage under Home Warranty (also known as Builders Warranty), i.e. those over three storeys in height. The aim is to promote efficient maintenance and monitoring of defects, as well as the prompt attention to defects by builders and developers to recover the bond amount. Developers will need to lodge a bond worth 2% of the building’s contract price with NSW Fair Trading.

Since 1999, CRM Brokers have been providing developers with an efficient and cost-effective way to satisfy financial guarantee requirements under contract through unsecured Surety Bonds.

Whilst complying with the new legislation, Surety Bonds provide the added advantages of;

Surety Bonds are not limit to developers and can are typically used in construction, building, engineering, mining, and services industries.

For more information on Surety Bonds, please contact CRM Brokers on 1300 880 494 or visit our Surety Bonds web page

 

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