owner inspections logo
1 300 471 805

The Benefits of the SBBIS for Developers and Builders

Background on the SBBIS

The Strata Building Bond & Inspection Scheme (SBBIS) was introduced in New South Wales in 2018 as a government-backed initiative. Designed for strata properties, this scheme has redefined how building defects are handled, ensuring financial security and maintaining construction quality. Primarily, it aims to protect the owners of strata properties from the financial strain of rectifying building defects.

Implementation Details

The SBBIS mandates that developers of new strata buildings with four storeys or more lodge a bond with the NSW Fair Trading, equivalent to 2% of the building’s total contract price. This bond, held securely, can be used to cover the rectification of building defects identified within two years of occupation.

 

  1. Lowering Legal Risks

    • Legal Defense:
      • For developers and builders, the Strata Building Bond and Inspections Scheme (SBBIS) acts as a safeguard. It minimizes legal liabilities associated with building defects. If inspectors identify a defect within a specific time, the bond covers the cost of fixing it. This protection helps avoid potential lawsuits from owners’ corporations.
    • Financial Steadiness:
      • This benefit extends into financial stability for developers and builders. Having a designated bond for fixing defects removes financial uncertainties tied to unexpected problems. Therefore, it helps maintain a robust financial position.

  2. Boosting Buyer Assurance

    • Enhanced Trust:
      • Moreover, the SBBIS significantly boosts confidence among potential buyers of new strata properties. When buyers know about this layer of protection against defects, they tend to trust developers and builders more, which in turn stimulates sales.
    • Positive Impact on Sales:
      • Consequently, this increased trust offers a tangible advantage. With the backing of the SBBIS, the chances of finalizing sales of new strata properties rise, enhancing profitability for those behind the development.

  3. Raising Brand Reputation

    • Building Trust:
      • Participation in the SBBIS helps developers and builders gain trust from prospective buyers and stakeholders. Following the guidelines of the scheme signals a dedication to excellence, resonating well with market demands.
    • Encouraging Repeat Business:
      • As a result, an enhanced reputation often paves the way for repeat business and the opportunity for capturing a larger market share. By consistently delivering quality and reliability, developers and builders can look forward to enduring growth in an increasingly competitive arena. 

  4. Additional Advantages

        • Cost Savings and Enhanced Quality:

          • The Strata Building Bond and Inspections Scheme (SBBIS) not only lowers the expenses associated with building defects insurance but also elevates the overall construction quality. These direct benefits make the scheme appealing for both developers and builders.

        • Efficient Rectification:

          • Moreover, the SBBIS simplifies the process of fixing building defects. Its organized framework and straightforward guidelines expedite the rectification process, thereby conserving both time and resources.

The Strata Building Bond and Inspections Scheme (SBBIS) serves as a vital resource for developers and builders alike. It not only minimizes risks but also boosts confidence among stakeholders. Moreover, the SBBIS functions as a comprehensive tool that champions both quality in construction and financial security.

When it comes to ensuring compliance with the SBBIS, our building inspection firm, Owner Inspections, is equipped with qualified strata inspectors to guide you. We offer a smooth experience, giving you the necessary expertise to successfully navigate this crucial program.

Back To Top