This means that the scheme will only apply to construction contracts signed (or where there is no contract and building work commences) from 1 January 2018. NSW Fair Trading will not require developers of new strata schemes to lodge defect bonds before 31 December 2017.
The commencement date has been delayed so that all procedural and professional requirements supporting the scheme are in place before commencement. This includes finalisation of:
- the new standards and procedures relating to strata-specific building inspections
- new digital business processes to support bond lodgement and processing of the scheme.
NSW Fair Trading has developed the scheme in consultation with stakeholders in the strata, legal, building and development sectors.