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Posted 27 June 2017
Category: Construction, Residential Building Works
New strata laws will commence on 30 November 2016. As a part of the change to the strata laws, a building defect bond scheme is due to commence on 1 January 2018.
Under this scheme, developers will be required to lodge a 2% bond with the Secretary of the Department of Finance, Services and Innovation for the final contract price of the building.
The purpose of the bond is to act as security in the event that it becomes necessary to rectify defects to the building work once the building is completed.
Builders and developers should note that the scheme only applies to:
Accordingly the scheme will not apply to the majority of the current construction cycle.
If and when you need advice regarding the building defect bond scheme and how it affects you, we can assist. For example we can assist with the following issues which will arise after 1 January 2018:
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.