The NSW Government has again postponed the commencement of the new developer bond and defect inspection regime under Part 11 of the Strata Schemes Management Act 2015 (Act). The regime was proclaimed to commence on 1 July 2017 but has now been delayed to a new commencement date of 1 January 2018. The NSW Government recently introduced legislation into parliament to amend the commencement date under the Act.
The deferred commencement of the defect inspection regime is stated to be the result of a number of issues including:
- the ongoing development of a new national standard that outlines the requirements for strata-specific building inspections; and
- the development of a digital system to support the scheme which will be available to all participants.
Accordingly, and subject to any further postponement, the regime will only apply to construction contracts signed (or where there is no contract and building work commences) from 1 January 2018.