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Damage bonds

Damage security bonds for engineering/civil works are financial guarantees required by Councils to ensure that any damage to public infrastructure from construction activities is adequately restored. These bonds protect Council assets and hold developers and contractors accountable for repairs.

Damage bonds

Damage security bonds are an essential part of managing the impact of construction projects on public infrastructure. They help maintain the quality and safety of public spaces, ensuring that any damage is promptly and properly addressed.
Bega Valley Shire Council requires the payment of a damage bond for developments, including:

  • Subdivisions
  • Erection of new buildings
  • Demolition of a work or building
  • Additions
  • Sheds
  • Swimming pool installations

Where the estimated cost of development is $50,000 or more and the development has frontage to a sealed road.

The purpose of the bond is to fund repairs to Council assets as a result of activities associated with private construction works.

The damage bond value and administration fees are detailed in Council’s fees and charges

Damage Bond Application Form

Inspections

Preliminary inspection

Council’s responsible officer will undertake a preliminary inspection prior to commencement of development works.

This preliminary inspection is to record (photograph) any existing damage to Council assets so that any existing damage is not attributed to the development works being undertaken by the applicant.

Should the applicant have comments in relation to any existing damage to Council assets please attached a written submission and photographs.

Final Inspection

A final inspection will be carried out by Council’s responsible officer and the bond (minus the bond administration fee) will be considered for refund:

  • Once all works, including landscaping, driveway construction, turfing etc have been completed
  • Following the issue of a Final Occupation Certificate by the Certifying Authority for the development
  • Upon application for the release of the subdivision.

In the case of excavation, the bond will be considered for refund when the applicant advised that the works are completed and have meet the Certifying Authority’s requirements.

If the final inspection is deemed unsatisfactory, an additional inspection fee as per Council’s fees and charges, will be charged per reinspection and retained from the damage bond.

Repairs to damage of Council assets

The applicant is responsible for any damage incurred to Council assets as a result of development works.

Should the cost to repair the damage exceed the amount of bond paid, Council requires the applicant to pay the excess amount.

If the applicant refuses to pay, Council will undertake the rectification works and all costs associated will be charged to the applicant.

 

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