Long Term Impacts
This scheme is created to overcome the increasing defects claims for multi-storey residential buildings. However, the operation of the building bond scheme will result in a significant increase in awareness of defects and an increase in control costs.
Aside from resolving issues quickly, it can also highlight the problems that would have been unseen.
Under the Home Building Act, the scheme will not replace the developers, builders, or Owners Corporations’ existing rights. It’s essential to consider the impact of building defects bond on any project or contract from January 1.
This scheme has been designed to overcome the increasing defects claims being made for multi-storey residential buildings. However, the operation of this scheme will result in a marked increase in awareness of defects and a potential rise in control costs. While this can resolve issues quickly, it will also highlight issues that would have been undiscovered.
The scheme will not replace an owner’s corporations, developers, or builders existing rights under the Home Building Act. It is crucial to properly consider building defect bonds’ impact on any project or contract entered into from January 1.
If you are still confused and want to learn more about the building bond and mandatory defect inspection reports, contact Effective Building & Consultancy at 02 9613 3353, and we will be glad to assist you.