Strata Building Bond & Inspection Scheme (SBBIS)

The Strata Schemes Management Act 1996 was replaced by the Strata Building Bond and Inspection Scheme (“the Scheme”) that commenced on 1st January 2018.

The above mentioned “Scheme” covers newly completed residential or partially residential developments that do not have HBCF Insurance are required by the Strata Building Bonds and Inspectors Scheme (SBBIS) to appoint a registered SIP Inspector to inspects within 12 months of completion of building works. The inspector is required to carry out interim and final inspections at 15 to 18 months and 21 to 24 months subsequent to the issue of an Occupation Certificate.

The Scheme:

• requires developers to lodge a building bond, that is 2% of the contract price for the building work, with NSW Fair Trading (the Secretary). The building bond secures funds (up to the amount of the bond) to pay for the costs of rectifying defective building works.
• imposes inspection and reporting requirements on developers carrying out residential building work where such work is part of a strata scheme and not subject to insurance requirements under the Home Building Compensation Fund (HBCF). Inspections are required to be carried out by building inspectors who are appointed in accordance with the Act and
• is intended to encourage the early identification and addressing of defective building work in strata schemes (that being work which is in breach of the warranties contained within Part 2C of the Home Building Act 1989 (NSW) or work done in such a way that it would constitute a breach) thereby providing unit holders with additional statutory protection to ensure the timely and appropriate rectification of defects.

Inspecta Holmes Strata Building Inspector (Nathan Oliver) belongs to the MBA NSW Strata Inspection Panel (SIP) as per the legislation. We have a team of consultants that cover facades, structural, fire engineering, fire protection, hydraulic reporting, mechanical, electrical & remedial.

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