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Criteria: RICS Strata Inspection Panel – NSW Strata Building Bond and Inspection Scheme

Criteria: RICS Strata Inspection Panel – NSW Strata Building Bond and Inspection Scheme

These criteria are intended to prepare experienced building surveyors to serve the NSW SBBIS in accordance with the SBBIS process.

Under this scheme, from 1 January 2018 developers of new residential strata buildings (4 storeys and higher) are required to pay a building bond to NSW Fair Trading equal to two percent of the building contract price. After two years, this building bond may be used to pay for any identified rectification work if the developer has failed to do so.

The developer is required to appoint an appropriately qualified professional to complete building inspection reports on any defects and their remediation. That qualified professional must be from a Strata Inspection Panel (SIP) provided by an authorised professional association.

  1. Criteria for qualification to the RICS Strata Inspection Panel (SIP)

Prior to any training that may be required, guidance will be given as to whether pre-qualification experience is at an appropriate level. The requirements:

  • Usually minimum MRICS (qualified through the Building Surveying Pathway) or another qualified professional area as deemed appropriate by RICS
  • Can demonstrate a minimum of 8 years professional experience, and a minimum of 5 years’ active involvement (post professional qualification) in building defect inspection, building pathology inspection and reporting or technical due diligence of property.
  • Recognition in the market of your involvement and expertise in your sphere of professional practice
  • Can demonstrate previous experience in providing building defect reports.
  1. Persons seeking to join the SIP
  2. As well as meeting the requirements in section 1. You will need to:
  • provide evidence of your relevant knowledge, skills, and experience, satisfactory to RICS, through completion of necessary documentation:
    • Strata Inspection Panel Skills Form.
  • Demonstrate you are a fit and proper person by providing:
    • Two professional references
    • Full professional resumé
    • Criminal record / insolvency declaration.
  • Demonstrate recognition in your market and industry sector, as reflected in your skills form and letters of reference, of your active involvement and expertise within the building industry with specialist knowledge of building defect inspection, building pathology inspection and reporting or technical due diligence of property.
  • attendance may be required at an RICS training courses to be arranged by RICS Australasia.
  • Receipt by RICS of a signed undertaking agreeing to the conditions and performance standards as a potential appointee.
  • Successful completion of the RICS Professional Ethics Module.
  • Agree to adhere to the -RICS Service Level Agreement for the SIP.
  • Agree to adhere to the prescribed codes of conduct and professional guidance.
  • Demonstrate ongoing compliance with continuous professional development (CPD) requirements of RICS.
  • Undertake to comply with any additional SIP- RICS Panel CPD requirements.
  • Pay relevant application and interview administration fees.
  • Participate in an RICS continual assessment
  1. RICS panel management and appointment and fees

RICS manages an approved Strata inspection panel under the SBBIS.

DRS and the Dispute Resolution Appointments Board hold the responsibility on behalf of RICS to ensure that these appointments are made effectively, and to required standards.

In the NSW Strata Building Bond and Inspection Scheme RICS Australasia, Panel Members may be appointed directly by the developer OR if this does not occur in the required timescale and with the agreement of the building owner(s), RICS may be invited by the NSW Government to assist it in making the appointment. This will be done based on the most suitable panellist on the basis of:

  • Required qualifications and skills
  • Relevant experience in respect of the asset type
  • Impartiality
  • Any special conditions required by instructing parties and/or set by legislation/the relevant government.
  • The relevance of the location of the matter and/or parties
  • Information provided by one or both parties (although RICS will not be bound by this)
  • Requests for a panellist who has special knowledge or experience
  • Having taken account of all other factors, the number of appointments the panellist has previously received in the year.

In return for assessing applicants to the Panel, managing and administering queries and appointments and promoting the panel, RICS requires an appointment fee equal to 10% of the panel member’s fee in undertaking an inspection as part of the Scheme. This applies whether the panel member is appointed by RICS, by the Government or by the developer directly.

All panellists must sign and comply with the Service Level Agreement between RICS Dispute Resolution Service (DRS) and the panellist. A copy is available from DRS upon request. 

These criteria are monitored and their effectiveness is reviewed on regular basis. DRS reserves the right to update/modify the criteria at any time.