Stage 6: Determining the cost to rectify defective building work
Who is involved
- Developer
- Owners corporation
- Person who provides the 209A report (if required)
- The Secretary (if required)
Who has tasks in the Strata Hub
- Developer
- Owners corporation
- Person who provides the 209A report (if required)
What happens at this stage
If there is defective building work identified in the final report, the cost to rectify it must be determined.
This can involve 1 or 2 steps:
Step 1
The developer and the owners corporation agree on the cost to rectify the defective building work. They both sign a ‘deed of agreement’ and apply to the Secretary to pay the agreed amount from the building bond within 30 days of receiving the final report.
If the deed of agreement is not received within 30 days, the Secretary will move to step 2.
Step 2
If the developer and the owners corporation cannot agree on the cost to rectify the defective building work, the Secretary can:
- require the owners corporation or the developer (or both) to provide any information or reports
- arrange for a person to provide a 209A report about the work required or the cost to rectify the defective building work.
The cost for arranging the person to provide the 209A report will be shared equally between the developer and the owners corporation.
The Secretary can give any documents related to the building work that might help the person who is providing the 209A report.
How to complete online tasks
To complete SBBIS tasks, developers, owners corporations (and potentially the person providing the 209A report) need to use the Strata Hub.
Strata Hub instructions
Our user instructions make it easy for you to understand what to do on the Strata Hub.
- How to complete stage 6 online tasks if you're a developer
- How to complete stage 6 online tasks if you're an owners corporation
Note: Each time you log in, you will need to enter the new verification code emailed to you.
Overview of the 8 stages of the scheme
Developer registers their project and lodges the building bond in the NSW Planning Portal.
Within 12 months of the building work being finished, the developer must appoint a building inspector.
Between 15 to 18 months after the building work is finished, the building inspector will complete an interim inspection and report.
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).
Between 21 to 24 months after the building work is finished, the building inspector will complete a final inspection and report.
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.
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.
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 SBBIS team at any stage during the SBBIS process via email at stratabond@customerservice.nsw.gov.au
For technical issues, contact the Strata Hub (Stages 2-8) via email at stratasystem@customerservice.nsw.gov.au