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Infrastructure Development Code

QA-7 - Appendix B Landscaping: Incomplete Works Bond Value Calculation


QA-7 Apx A.1   Minimum Value

The minimum value for this type of bond is $5000 (excluding GST). All calculated bond values less than this will be rounded up to this value. Calculated bond values $5000 or higher will apply as calculated.

Explanatory Note:
This minimum valve is set to reduce the likelihood of bonds default by Bond Holders. Default resolution can cost a lot of time and money for all parties involved and does not promote appropriate relationships between the parties involved.
Council are not obliged to provide for Bonds but do so in good faith. 


QA-7 Apx A.2   Bond Value Calculation

The value of the bonded works shall be calculated as follows:

  1. All costs for the installation of the bonded items shall be agreed between Council, the Consent Holder's Representative and the intended Bond Holder.
  2. All agreed items and values shall be listed on form B2 Bond Form - Schedule of Works.
  3. The agreed value of the bonded works shall be escalated by 25% to allow for a contingency amount to arrange completion of the development works where a bond is in default. This includes enacting the bond, design related to the works, construction cost index fluctuations and a component for risk.
  4. Add an allowance for GST to the escalated value.
Example 1:  
Agreed Value of Incomplete Works $25,416.00
Plus 25% Escalation for Period of Bond $6,354.00
Sub-Total 1 $31,770.00
Plus an allowance for GST (15%) $4,765.50
Total Value of Incomplete Works Bond $36,535.50
Example 2:  
Agreed Value of Incomplete Works $2,500.00
Plus 25% Escalation for Period of Bond $625.00
Sub-Total 1 $3,125.00 (<$5000, round up to minimum value)
Rounded Sub-Total 1 $5,000.00
Plus an allowance for GST (15%) $750.00
Total Value of Incomplete Works Bond $5,750.00

All costs associated with the provision of a bond are the responsibility of the Consent Holder's Representative.

Definitions in this section

Bond holder

Consent holder's representative



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