Strata Building Bond & Inspection Scheme (SBBIS)
What Is The Strata Building Bond & Inspection Scheme (SBBIS)?
Under the Strata Building bond & Inspections Scheme (SBBIS), developers of new apartment buildings 4 storeys or higher must pay a building bond to NSW Fair Trading equal to 2% of the total price paid or payable of all contracts for the building. Once the building has been completed, a Qualified Strata Inspector must inspect and approve the work before releasing the bond. The bond will remain in place until all work is complete and approved by a Qualified Strata Inspector.
8 Stages of SBBIS
Stage 1 – Building Bond Lodgement
The developer is responsible for obtaining and lodging a building bond with the Secretary (NSW Fair Trading).
Stage 2 – Inspector Appointment
(We get involved from here)
The developer must appoint a building inspector within 12 months of an occupation certificate (OC) being issued, and the owners’ corporation must approve the appointment.
Stage 3 – Interim Inspection and Report
The building inspector must attend the site to perform an interim inspection between 15 and 18 months after the occupation certificate is issued.
Stage 4 – Rectifying Defective Building Work
The developer is responsible for correcting any defective work identified in the interim report and must liaise with the builder.
Stage 5 – Final Inspection Report
The developer must arrange for the same building inspector who prepared the interim report to carry out the final inspection and provide a final report.
Stage 6 – Determining Cost to Rectify Defective Building Work
If defective building work is identified in the final report, the cost to rectify it must be determined.
Stage 7 – Paying the Building Bond
The payment of the building bond can occur 2 years after completion, with consent from both the developer and owners’ corporation.
Stage 8 – Completion
The Owners Corporation must use any money received from the Building Bond to rectify the defective building work identified in the Final Report within a reasonable time.