Council Guideline

Development/Construction Security Deposit

This guideline is to be read in conjunction with relevant legislation and the Council policy.

Council requires a security deposit, also referred to as a bond, from owners, developers and or builders to provide sufficient funds to complete works or repair any damage incurred within Council’s road reserve or on Council Property during the construction of an approved development or works.

Determination of Security Deposit

A security deposit relating to a Development Application or an Engineering Application is to be reasonably determined by Council in accordance with the Local Government Act 1993, Roads Act 1993 and the Environmental Planning & Assessment Act 1979.

The security deposit relating to a Complying Development Certificate is fixed in accordance with Council’s Annual Fees and Charges as required by the Environment Planning & Assessment Regulation 2001.

Payment of the Security Deposit and Road Damage Inspection Fee

When paying the security deposit you must complete the application form Bond Lodgement Form and lodge it with Council by email, mail, fax or in person at a Customer Service Centre along with the inspection fee payment.

The security deposit will be paid prior to works commencing in a form (e.g. bank guarantee or cash) as permitted by the relevant legislation (e.g. cash, cheque, bank guarantee).

Assessing existing condition

Council or the applicant (when required by conditions of consent) will prepare a digital video dilapidation report of Council’s infrastructure for Council’s records which may be relied upon when assessing a request to return the security deposit.

Return of the Security Deposit

An inspection will be carried out by Council upon the application for a return of the security deposit. 

The security deposit is returned less the cost of repairs to any damage, subject to Council’s satisfaction that there are no remaining works under the approved development that may cause damage to Council’s infrastructure (typically demonstrated via the provision of an Occupation Certificate if relating to a Development Application or Complying Development Certificate).

Council may also utilise the security deposit to complete unfinished works relating to Council infrastructure that were required as part of the approved development if the applicant fails to do so within a reasonable time frame.

Council may waive all or part of the security deposit if the need for a security deposit is lessened due to site conditions or constraints.

Council will only return the security deposit in accordance with the details contained on the applicable Bond lodgement form (bond form).

Requests to amend or add a recipient and details of the return must be accompanied with suitable identification and justification to the satisfaction of Council. Any requests to amend the recipient for returns totalling in excess of $2,000 must be accompanied with a statutory declaration in the form prescribed by Council:          

Unclaimed Security Deposit

Should the security deposit claim not be lodged within 6 years after it would reasonably be expected to be lodged, Council must send the unclaimed money to NSW Revenue, after having made reasonable attempts to contact the applicant