The Building Bond and Inspections Scheme was introduced by the NSW Government on 1 January 2018, requiring developers to lodge a bond of two per cent of a building’s contract price with NSW Fair Trading for residential and mixed-use high-rise strata buildings, four storeys plus. While there is much ambiguity around the legislation, there will be new costs involved and developers will need to carry a number of these.
How will this impact your development? Joe Marshall gave the Summit attendees a number of key strategies for developers to implement to ensure this new process is as streamlined as possible.
We’ve shared some of Joe’s chief points below:
It makes good business sense to include technology as a major part of your decision-making process, when working on your strategy for this Scheme. Not only will it reduce costs for the developer, it will also streamline activity and ensure a sophisticated product is delivered to the purchasers.Make sure the two per cent bond can be recouped. Implement a good recordkeeping process, using technology such as BuildingLink, and our defect tracking module. This way, you can track every item, along with every step involved in the rectification process (both from an operational and mediation viewpoint).Streamline communication around the rectification process. This is also invaluable in keeping all parties abreast of any changes.Choose technology that will give access to all relevant parties, so they can monitor and communicate on issues, under the one umbrella. The BuildingLink portal connects the developer, builder, sub-contractors, residents and management all in one place, making communication easier.
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