Strata Building Bond and Inspections Scheme

The Strata Building Bond and Inspections Scheme (SBBIS) requires developers to lodge a building bond with the Secretary before an application is made for an occupation certificate for new apartment building work. Developers pay a percentage of the contract price, which secures funds to pay for the rectification of defective building work, if required.

About the SBBIS

We are continuing to work with the NSW construction industry to improve confidence in the sector.

Under the Strata Building Bond and Inspections Scheme (SBBIS), developers of apartment buildings must lodge a building bond with the Secretary. The apartment buildings can include carparks, common areas, and commercial and retail (mixed-use) spaces.

The bond is 2% of the contract price (or the prescribed percentage in the regulation), and developers lodge it with the Secretary before the occupation certificate is issued.

The bond may be used to rectify defects identified in SBBIS inspections. If there are no defects, the bond is returned to the developer.

Note: SBBIS is one of the other consumer protection regimes like the Home Building Compensation Fund (HBCF). It applies to residential apartment buildings three storeys and below. SBBIS does not apply if HBCF does.

About the building bond

The building bond is a financial instrument that developers must provide to the Secretary. It's calculated as 2% of the total cost of all the contracts for constructing the building, or as prescribed by the regulations.

About the process

We manage the SBBIS process online through 2 portals:

For Stage 1 we use the NSW Planning Portal.
For Stages 2 to 8, the case moves to the Strata Hub.

Stage 1

Building bond lodgement

Developer registers their project and lodges the building bond in the NSW Planning Portal.

Stage 2

Building inspector appointment

Within 12 months of the building work being finished, the developer must appoint a building inspector.

Stage 3

Interim inspection and report

Between 15 and 18 months after the building work is finished, the building inspector will complete an interim inspection and report.

Stage 4

Rectifying defective building work

This can happen at any time, but the builder needs to rectify any identified defects before Stage 5 (indictive period is between 18 to 21 months after the building work is finished).

Stage 5

Final inspection and report

Between 21 to 24 months after the building work is finished, the building inspector will complete a final inspection and report.

Stage 6

Determining the cost to rectify defective building work

If there is defective building work identified in the interim report that has not been rectified, it will be identified in the final report. The cost to rectify the defective building work identified in the final report must be agreed or determined.

Stage 7

Paying the building bond

The building bond is used to pay for the rectification work identified in the final inspection and report. The building bond payment process should be completed between 2 to 3 years after the building work was finished.

Stage 8

Completion

The owners corporation completes the rectification of the defective building work. If the rectification costs less than the building bond, the balance is returned to the developer.

Internal review of decisions and NCAT orders

Find information about applying for an internal review of a decision, and the limited circumstances in which the NSW Civil and Administrative Tribunal can make orders during the SBBIS process.

Privacy and recordkeeping

All information and documents relating to the building bond will be stored in accordance with NSW Government recordkeeping and privacy policy.

Information manuals

Mandatory guidelines

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