Hi Clare,
Agreed we have a hard time getting developers to come back to rectify issues without an adequate cash bond.
Port Macquarie Hastings Council (regional NSW) holds 10% (or a minimum $2000) of the total value of all public assets within the subdivision release(as declared by the developer and spot checked by the Development Engineer) for the duration of the Defects Liability Period (DLP) which is 12 months. A partial draw down to half (5%) is allowed after the first 3 months if no issues are raised on interim reinspection.
The same question was in the last year or so asked among some NSW Development Engineers and from recollection several responses ranged from 5 to 10% of asset value and 6 to 12 month DLP duration.
Would be interested in other responses.
Kind regards
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Bevan Crofts
Development Engineer
bevan.crofts@pmhc.nsw.gov.auPort Macquarie-Hastings Council
PO Box 84
PORT MACQUARIE NSW 2444
Mob: 0409 686 507
Voicemail: (02) 6581 8050
Fax: (02) 6581 8123
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Original Message:
Sent: 18 May 2017 22:36
From: Clare Hamilton
Subject: Defects Liability Bonds
Hi everyone
I was wondering what Councils out there are doing in the way defects liability bonds?
Currently our Council does not impose a defects bond on subdivision consents and we are coming up against issues were we have no teeth at the end of the defects period to get things remediated. The titles have been issued and the developer doesn't care.
What experience does everyone have with this? Do you not have a bond, do you charge a bond that is a percentage of the vested assets value or do you have a set value that you charge?
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Clare Hamilton
Development Engineer
Selwyn District Council
Rolleston
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