NSW Government simplifies Building Bond Management

The NSW Government has deployed Pega software to help simplify its building bond management process through the newly created Strata Hub. By digitising the Strata Building Bond and Inspections Scheme (SBBIS) with a new online site and mobile app, NSW Government is delivering transparency, speed, and accountability for developers, inspectors, and building owners. 

NSW Government requires developers to submit a bond equal to two per cent of the building contract price on all newly constructed multi-storey strata developments. This provides protection for the owners of new multi-storey buildings by mandating funds be set aside up-front to cover costs of fixing defective work.

However, the previous paper-based bond process system was slow and inefficient. For example, applicants had to fill out repetitive information into up to 35 manual forms and rely on manual monitoring of timelines and due dates.

“The SBBIS digitisation is a part of a broader transformation strategy currently underway as we seek to increase efficiencies, build trust, and strengthen confidence in the building industry,” said Rose Webb, fair trading commissioner at NSW Customer Service. “By doing so, we will provide better protection for new apartment owners against defective building work.”

By digitising processes with Pega Government Platform, NSW Government is eliminating its time-consuming paper-based operations – significantly improving the speed and efficiency of the entire building bond process with the following elements:

The new SBBIS on the Strata Hub provides full online transparency into all claims, reports, and inspections for all parties involved while keeping everyone on track with real-time updates and deadline reminders. The system assists users on the front-end by streamlining required data inputs and pre-filling known data, while also helping NSW Government on the back-end with compliance support and improved cybersecurity

Pega also powers the newly launched SBBIS Inspect app, which integrates with the Strata Hub. The app - built on Pega Mobile - is helping to streamline the way authorised NSW building inspectors complete their reports.

Previously, inspectors would visit a site, take photos of defects (which can mean hundreds of images), and add them to a long manual report later. Now inspectors can capture all data and evidence on the spot, saving time and money while increasing report efficiency and accuracy.

The app also supports off-line working, meaning no disruption is caused when inspecting basements or other areas with minimal connectivity. Digitally managed processes also give more time back to inspectors who can shift their focus to high-risk compliance matters.

As part of the digitisation, the Strata Hub enables parties to proceed through the financial agreements more quickly so for building defects can be rectified, without having to go through expensive, complex, and lengthy legal claims. SBBIS currently holds more than $66.5 million in building bonds to fix building defects in a timely manner.