Strata Building Bond & Inspection Scheme

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.

What can we do

At Owner Inspections, we are passionate about providing the best defect reports and defect rectification solutions. Our qualified Strata Building Bond Inspectors ensure that all defect inspections are carried out in accordance with the NSW Fair Trading regulations.

With our in-house support team, we can provide the fastest turnaround service to minimise the inspection and reporting timeframe.

8 Stages of SBBIS:
  • The developer is responsible for obtaining and lodging a building bond with the Secretary (NSW Fair Trading).
  • The bond amount must be calculated before applying for an occupation certificate.
  • To register a project in the NSW Planning Portal, developers need to know: the street address, the contact information of both developer & builder; class/use/storeys/units of development; and documents such as contracts, warranties etc.
  • Electronic copy of the building bond needs to be uploaded in the NSW Planning Portal, while the original should be delivered via courier, express post, or by hand pending COVID safe orders.
  • 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.
  • If this is not done in time, Fair Trading will arrange for one to be appointed at the developer’s cost.
  • Within 28 days of appointing a building inspector, documents such as those listed under Stage 1 – Building Bond Lodgement and any information regarding known defects or maintenance schedules should be provided to them by the developer.
  • The building inspector must attend the site to perform an interim inspection between 15 and 18 months after the occupation certificate is issued.
  • The purpose of this inspection is to identify any defective building work.
  • The building inspector must give at least 14 days of written notice for access, and all parties must provide reasonable assistance with no obstruction or hindrance.
  • Defective work can be identified through visual inspections and non-destructive testing techniques; however, a secondary inspector may also need additional specialist/expert reports included in their report.
  • The SBBIS on Strata Hub will generate an interim report which should then be provided electronically via link form by Fair Trading, owners corporation, developer and builder responsible for defective works (if any).
  • If no defect is found in the interim report, then it becomes final without requiring further action from Fair Trading, which will release the bond accordingly upon considering the developer’s application.
  • The developer is responsible for correcting any defective work identified in the interim report and must liaise with the builder.
  • If the original builder is unavailable, the developer should arrange a new builder.
  • Rectification of defects should take place after an interim inspection has been conducted and before the final inspection commences (roughly between 18 to 21 months).
  • The builder must give at least 14 days written notice to relevant parties before entering affected lots (e.g., apartments or balconies).
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  • 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.
  • If the original inspector is unavailable, written notice of this must be provided to Fair Trading within 14 days.
  • The Final Inspection takes place between 21-24 months after issuing an Occupation Certificate, determining whether defective building work identified in Interim Report has been rectified.
  • Upon completion of the Final Report (which includes details on how outstanding defective works should be rectified), links are sent out to parties such as Secretary (Fair Trading), Owners Corporation etc., which will also include information on accessing electronic copies from them if necessary.
  • Depending on findings from Final Report, either the whole bond may be returned by Fair Trade or costs estimated for rectifying any defects found
  • If defective building work is identified in the final report, the cost to rectify it must be determined.
  • The developer and owners corporation can reach an agreement regarding this cost, providing a ‘deed of agreement’ and making an application to Fair Trading within 30 days.
  • If no agreement is reached, Fair Trading may require either party to provide information or reports or arrange for an appropriately qualified person to provide a report on the rectification costs.
  • This amount will then be claimed from the building bond, with both parties sharing equally in arranging this person’s services.
  • The payment of the building bond can occur 2 years after completion, with consent from both the developer and owners’ corporation.
  • If no defects are found in the interim report, and a waiver is successfully applied for, it becomes a final report and payment will be released within 90 days to an approved issuer.
  • If no defects are found in the final report, then again,the release of funds will happen within 90 days to an approved issuer.
  • In case defective work is identified in stage 5, payments come out of the building bond between 2-3 years post-occupation certificate issuance; if the cost exceeds the amount held by the bond, then the full amount is paid to the owners’ corporation.
  • Fair Trading provides 14 days written notice prior to any proposed payments from Building Bond & may refuse/reduce such amounts if access was unreasonably refused for rectification works
  • 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.
  • They must also give written notice of completion and return any leftover bond after rectification is complete.
  • The timeline for this process should be completed within 3 years, excluding time taken to fix defects mentioned in the report, but this can vary due to applications for variations or reviewable decisions by Fair Trading, as well as orders made by NSW Civil and Administrative Tribunal.

Not sure what these are? we can help you to determine if you require these by having a look over your plans provided to you by your builder. This is free of charge, and we will do this in the initial quotation process. The Bored Piers stage is particularly important, as it requires measuring the strength of your foundations which ultimately will be the base of your new home.

All of our inspectors are qualified to detect foundations for faults and will provide you with a detailed report. You can then work with your builder to have these fixed and move onto the next stage without any concerns surrounding the structural base of your investment.

This is usually the first stage of the inspections and can be the most crucial. As experienced builders ourselves, we strongly advise this. Your pre-slab inspection will be the key to ensuring that your future home does not experience any plumbing or drainage issues down the line, as well as foundation levelling issues and the like. At this point in your build journey, we carefully examine the steel against the engineering plans that are provided to you by your builder.Any issues can then be rectified for successful progression onto the next stage.

Frame is all about design, this is going to be the foundation for the finish. It’s the bones of the house and we know and understand that. We can work with you to make sure that the plans are followed correctly and that you can feel assured knowing your house is built on quality workmanship.

This inspection picks up smaller detailed defects. At this stage your build will be looking more structurally complete. Our inspectors will check the wall cavities and make sure that everything is in order before the internal walls are put up. This stage also gives our qualified inspector the opportunity to check the fascia, the roof gutters, brickwork and external windows and doors and more. Making this stage necessary in order to ensure that the home is on its way to being climate ready and weatherproofed.

You’re almost at the end stage of your build. This inspection will ensure that all fixtures and fittings are correctly installed. You new home will be detected for any final errors prior to the paint being applied internally. Not only this but we can inspect areas that may be overlooked by the untrained eye. This inspection will be the difference between a finished home and a perfect home. All of your internal cupboards, sinks, cabinets, doors, skirting and cladding etc will be examined to make sure they are correctly fitted and ready for use. If the waterproofing is ready at this stage, we will examine that for you free of charge.

You’re almost ready to move in now. At this point we will visit your new home and make sure that any major defect previously detected has been fixed. You’re dwelling should now be in a condition that is satisfactory and in accordance with the Australian Building Standard. Our team are qualified, registered, and experienced. We are registered with the Victorian Building Authority, Queensland Building and Construction Commission, and NSW Fair Trading. All of our inspectors are licenced and have a minimum of 15 years of experience in the field. At this final stage, we can advise you and answer any queries that you might have, so you move forward with your investment comfortable in the knowledge that your build has been checked thoroughly by a professional.

Everyone makes mistakes. That’s why it’s important to inspect all stages of your build to ensure that everything is going according to plan.

If you’re a first-time home builder, this can be a daunting task. How do you know what to look for? That’s where we come in.

Our experienced inspectors make sure that your builder isn’t taking shortcuts and that your house is meeting building standards. This assures you that your house is safe to live in and is not prone to problems that could cost you thousands.

We provide: 

  • bored piers inspection
  • pre-slab concrete pouring inspection
  • frame inspection
  • lock-up and pre-plaster inspection
  • fixing and waterproofing inspection
  • completion and pre-handover inspection.

We are registered with the Victorian Building Authority, Queensland Building and Construction Commission, and NSW Fair Trading. All of our inspectors are licenced and have a minimum of 15 years of experience in the field.

Don’t just take our word for it

Here’s what our clients say about us
Lisa Skinner
Lisa Skinner
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I am absolutely thrilled with the professional service I ave received from the whole team at Owner Inspections. From Des who provided my initial quote, one that is far more competitive than any of the other 3 I got, to the team at bookings who have been responsive and flexible to my communications and requirements. Finally my actual on site inspector Ty has been professional with an excellent eye for detail. I can not recommend these guys highly enough, and firmly believe it is a very sound investment for my build. Thank you all so much. Lisa
Vishal Ranjan
Vishal Ranjan
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We hired them after a bit of research and recommendation from a friend, who also had great experience with them. They also advice you with proper response if builder pushes back on any of the rectification request. Our experience with them is pleasant and I believe their service is value for money. They are professional, very responsive and respond to queries promptly.
Nagaraj A.H
Nagaraj A.H
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They have done extremely well by identifying all the faults. Professional and very friendly! I would like to choose them all the time! I have done multiple house inspections while searching for the house and always my go to inspectors for all the building inspections....Cost is also reasonable and competitive. Also helped in allocating resources during the given time, since existing tenant has given some odd timings.

Special thanks once again, for doing a great job from Owner inspection company side on my inspections.
Trevayne
Trevayne
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Highly recommend owner inspections as your private inspector. They were very helpful and informative from the get go and always responded to any queries very promptly, even after business hours. Their price was very competitive and had a few perks that other companies didn’t have. Will definitely use them in future! Thanks guys
JET A
JET A
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The team is very accommodating to changes in inspection schedules. The inspection reports are well written and I am glad to have asked them to do 3 inspections for my house - frame, lock -up, and fixing. I'd recommend you talk to them to get a price bundle on inspections.
Tofique Tambawala
Tofique Tambawala
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I recently got the pre pour slab steel review done. The process was really smooth. The inspector was very friendly and explained everything nicely. Report was nice with photographs. And there was good support after as well for defect fixes
Hariharan V
Hariharan V
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I’ve really had a pleasant experience with Owners Inspection. First of all Des has been wonderful calm and patient in answering all my queries and Yilmaz has been excellent with the inspection done. Got the report very next day morning and most of the corrections were already done. Would certainly recommend.
mary ann cortez
mary ann cortez
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They have high quality reports. I am building with Carlisle Homes and they acknowledge their reports. No issues. Very easy to deal with. Highlights will be the customer service and timely reports. I availed all Stages inspection and it is worth it especially if you do not have A) time B) know how in construction.
khyati dogra
khyati dogra
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The frame inspection was professionally carried out. The inspector was quite meticulous and did a great job. The report was detailed to pick up the defects. My partner and I are satisfied with the service provided.
JET A
JET A
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The team is very accommodating to changes in inspection schedules. The inspection reports are well written and I am glad to have asked them to do 3 inspections for my house - frame, lock -up, and fixing. I'd recommend you talk to them to get a price bundle on inspections.
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