New South Wales Consolidated Regulations

STRATA SCHEMES MANAGEMENT REGULATION 2016 - REG 50

50 Contract price for determining building bond

(1) For the purposes of the definition of
"contract price" in section 189 of the Act, the contract price for building work is the total price paid or payable under all the applicable contracts for the building work regardless of when the amounts become payable.

(2) However, the contract price for building work is to be the price set out in a cost report if--

(a) there is no written contract for the building work, or

(b) the parties to the building contract are connected persons (other than as a result of being parties to the contract).

(2A) The cost report is to be prepared by a qualified quantity surveyor--

(a) engaged by the developer (except as provided by paragraph (b)), or

(b) determined by the Tribunal or the Supreme Court to be appropriate in proceedings dealing with an application by an owners corporation or the Secretary under section 211 of the Act.

(2B) The quantity surveyor who prepares the cost report must not be connected to--

(a) the builder or the developer (other than as a result of being engaged by the developer to prepare the report), or

(b) a bank, or other person, providing finance for the building work.

(2C) For the purposes of this clause, a
"qualified quantity surveyor" is a quantity surveyor who is a member of the Australian Institute of Quantity Surveyors or the Royal Institution of Chartered Surveyors.

(3) A cost report prepared by a quantity surveyor for the purposes of this clause must include the costs of the following and be accompanied by a certificate by the quantity surveyor that he or she has inspected the as-built drawings and specifications for the strata plan to which the report relates--

(a) construction and fit out costs, not including appliance and PC items,

(b) demolition and site preparation,

(c) excavation,

(d) car parking,

(e) costs for the common property that is included in the property plan, including landscaping, pools, fencing and gates,

(f) professional fees,

(g) taxes applied in the calculation of the as-built construction.