SDSS are the leading inspection agency under the NSW Strata Building Bond & Inspections Scheme (SBBIS). Under the SBBIS program, developers of new apartment buildings (four stories or above) are required to lodge a security bond with NSW Fair Trading before an occupation certificate will be issued. The building bond is equal to 3% of the entire contract price for the construction of an apartment building. The bond provides security that funds are available to rectify any building defects identified during a prescribed inspection procedure that are not fully remediated in accordance with the SBBIS program.
Inspections can only be carried out by authorised Strata Building Bond inspectors. The developer selects an authorised inspector within 12 months of the date of issue of the Occupation Certificate (OC), and their choice must be approved by the owners corporation.
The inspection program consists of an Interim inspection carried out between 15 and 18 months after the OC is issued (Interim inspection). This is followed by a 3-month period for identified defects to be rectified before a reinspection (Final inspection) is conducted between 21 and 24 months after the date the Occupation Certificate (OC) was issued.
The Interim inspection requires every unit as well as common access areas in a development to be inspected. SDSS manages the entire process which commences by providing residents with at least 14 days’ notice of an upcoming inspection. Non-destructive testing equipment and visual inspections are used to identify defective work.
Once inspections are complete, all items are uploaded to the NSW Government’s Strata Hub platform for approval before the Interim report is issued to the developer and owners corporation.
The Final inspection conducted 21-24 months after OC re-inspects the defects identified in the Interim report to ensure they have been satisfactorily rectified. Pending successful rectification of all items, the Bond is returned to the developer, or alternatively, if items remain unresolved, the Bond is relied upon to cover the cost of remediating any outstanding defects.
With more than 20% of the authorised SBBIS inspectors on the SDSS team, we have completed the majority of inspections in NSW. This has given us a wealth of experience that we are able to draw on to ensure we can deliver an efficient and effective outcome for all stakeholders.
Contact us to learn how our SBBIS program can help achieve a premium and successful outcome for your project.