Stage 1: Building bond lodgement

You are at Stage 1

If you're the developer, the building works would have been registered in the NSW Planning Portal at the development application stage. Now, you must use the portal to lodge a building bond, upload documents, and pay a lodgement fee, before you apply for an occupation certificate.

See an overview of all 8 stages and a process map (PDF 21.41KB) to help you understand each stage.

On this page

Important information about Stage 1

In the NSW Planning Portal, developers must:

register your development
complete SBBIS tasks
upload documents as required under clause 46A of the Strata Schemes Management Regulation 2016 and
upload a draft of your building bond.

Outside the NSW Planning Portal, developers:

must ensure the issued building bond complies with the terms acceptable to the Secretary (refer to the guidelines (PDF 551.92KB))
should not change the terms and conditions in the building bond
after the strata bond case has been reviewed and you’ve received instructions to have the building bond issued, developers should obtain the original building bond from the approved issuer and deliver it to the Secretary
the Secretary must review and accept the original building bond before an application can be made by the developer for the occupation certificate.

Note: If the building bond does not comply and/or any other mandatory requirements have not been completed, there may be significant delays.

You can find definitions of key SBBIS terms in our glossary.

Who is involved

Developer
Approved issuers of building bonds
The Secretary

Who has tasks in the NSW Planning Portal

Developer

The time it takes to get a building bond from an approved issuer may vary, so it's best to start this process early.

The original building bond should only be issued once you receive instructions from the Secretary to do so. You must upload a draft as part of your document lodgement in the NSW Planning Portal.

What the developer must do

How to lodge the building bond in your strata bond case

Developers have the following obligations:

Pay $1500 lodgement fee (excluding GST).
Upload mandatory documents.
Calculate contract price and building bond amount.
Building bond lodgement (draft, issued and original delivered plus acceptance from the Secretary).

What you need

1. To pay the $1500 lodgement fee

Before you begin your registration, make sure you have the:

building bond (see below 'For the building bond lodgement – Secretary acceptance (draft, issued and original)
address of the building
developer’s name, address, email, phone number and contact name
builder’s name, licence number, address, email and phone number
building class, building use, number of storeys and residential units of the development
credit or debit card to pay the lodgement fee. The NSW Planning Portal will direct you to the payment gateway.

2. To upload the mandatory documents

To upload the mandatory documents, make sure you have:

any document relevant to the contract price (for example, the quantity surveyor’s cost report if there is no written contract, or if the developer and builder are connected)
the contracts between the developer and builder including early works contracts
specifications and any changes (including ‘issued for construction’ and ‘as built’ drawings, and details of approved alternative solutions to meet the Building Code of Australia)
any written warranties
any schedule of samples (fixtures, fittings, materials or finishes) approved by the developer for use in the building work
any development consents, approvals or certificates
for building work with an alternative fire safety solution, provide a copy of any relevant fire engineering report by an accredited fire safety practitioner
any certificates relating to the design of the building work such as Design Verification Statements
any reports obtained by the developer or builder relating to the inspections during the construction.

If there are different versions of a document, upload the one that was current just before you applied for the OC.

For details, see the Environmental Planning and Assessment Act 1979.

Requests for more information will come from the NSW Planning Portal to the developer-provided email address.

3. To calculate the contract price and building bond amount

The developer must calculate the building bond amount just before making an application for an occupation certificate (OC).

For the purpose of the strata building bond and inspections scheme, learn how to calculate the contract price and the amount to be secured by the building bond (PDF 1.73MB).

The amount secured by the building bond is 2% of the contract price (or the prescribed percentage in the regulation).

4. For the building bond lodgement – Secretary acceptance (draft, issued and original)

The building bond can be a 'bank guarantee' or ‘bond’ issued by an approved issuer. It must be accepted and approved by the Secretary before making any application for an occupation certificate.

Draft

The issued building bond must comply with the terms acceptable to the Secretary (see terms on page 9 of the guideline (PDF 551.92KB)). Use the template in Part 8: Suggested format for building bond (PDF 551.92KB). You should upload drafts of the building bond into the NSW Planning Portal until all details are correct and the Secretary suggests getting the building bond issued.

Issued

The time it takes to get a building bond from an approved issuer may vary, so this process should start as early as possible.

Once the Secretary has suggested the final draft be issued, the developer should advise the approved issuer to issue the original building bond.

A copy of the issued building bond must be uploaded into the NSW Planning Portal.

Original

The developer is required to send the original building bond to the Secretary (it can be sent directly from the approved issuer to the Secretary).

Building bonds

We do not accept hand deliveries of the building bond. You must use Express Post or courier.

The Secretary will perform checks on the original building bond to ensure it is valid, then issue a receipt. Application for an occupation certificate must wait until after the Secretary has accepted and approved the original building bond.

Acceptance

Within 10 business days of receipt, the Secretary will accept and approve the building bond in the NSW Planning Portal. A notification will be issued to the developer via email. This is when the building bond is recorded as lodged (not when the original is delivered).

Where to send the building bond

Send the original building bond via one of the following:

Express Post
Strata building bond and inspections scheme, Building Commission NSW
Attention: Manager SBBIS – Level 28 mailroom
PO BOX 226, Parramatta NSW 2124
Courier
Strata building bond and inspections scheme, Building Commission NSW
Attention: Manager SBBIS – Level 28 mailroom
4 Parramatta Square, 12 Darcy St, Parramatta NSW 2150

What happens next

After the Secretary has approved the building bond and the acceptance notification has been issued, the developer may then apply for an occupation certificate in the NSW Planning Portal. The building bond case now moves to the SBBIS on the Strata Hub.

Mandatory guidelines

By law, developers must read and apply the building bond guidelines before registering their developments. See the building bond guidelines (PDF 551.92KB).

How to complete online tasks

To complete online tasks, developers need to use the NSW Planning Portal.

The user instructions in the portal make it easy for you to understand what to do. Look under the tab 'post consent certificates' for strata building bond lodgement.

Go to the NSW Planning Portal

Overview of the 8 stages of the scheme

You are here – 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 to 18 months after the building work is finished, the building inspector will complete an interim inspection and report.

Stage 4: Rectify 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.

Contact us

Strata Building Bond and Inspections Scheme

You can contact the Strata Building Bond and Inspections Scheme (SBBIS) team at any stage during the strata bond process on stratabond@customerservice.nsw.gov.au.

If you have any technical issues with either of the online portals, please contact:

NSW Planning Portal (Stage 1) – eplanning.support@planning.nsw.gov.au or by phoning 1300 305 695
Strata Hub (Stages 2-8) – stratasystem@customerservice.nsw.gov.au

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