Environmental Planning and Assessment Act 1979 for any part of a building for which the building work was done.The developer of a strata scheme must give the Secretary a security (a ) for building work to which this Part applies before an occupation certificate is issued under the
The amount secured by a building bond is to be 2% of the contract price for the building work.
The purpose of the building bond is to secure funding for the payment (up to the amount of the bond) of the costs of rectifying defective building work identified in a final report under this Part.
If the building work to which this Part applies comprises only part of the building work to which a contract price applies, the amount secured is to be 2% of the part of the contract price applicable to the building work to which this Part applies.
A developer must not fail to comply with this section.Maximum penalty—200 penalty units.