Bank guarantees for TfNSW halved
In response to UDIA advocacy for better customer service and support for development with Transport for NSW (TfNSW; formerly RMS) and the Minister for Regional Transport and Roads, Paul Toole MP, we have today confirmed that the requirements on developers for bank guarantees to secure road works under the Works Authorisation Deed (WAD) have been cut in half.
TfNSW has committed to a full review of its internal procedures including the WAD process after our advocacy for improvements. We will be working closely with TfNSW on the broader review efforts.
These moves follow the recent addition of a new key resource with Damien Pfeiffer appointed Director Development Services – Land Use, Regional and Outer Metropolitan and an ongoing wider internal review of resourcing.
TfNSW had required security under the WAD in the form of a bank guarantee or cash bond at 100% of the cost of works until practical completion, and 50% held for the 12 months defects liability period. As of today, bank guarantees will be reduced to 50% until practical completion and 25% for the 12 months defects liability period. The reduction of bank guarantees applies to current and future WAD contracts. TfNSW will work with individual proponents to apply the reduction to existing WADs. UDIA continues to engage on this issue and TfNSW has indicated further reductions may be possible.
UDIA is leading industry advocacy for improvements at Transport for NSW. Our Hunter Reference Group is meeting frequently with senior TfNSW officials who have committed to addressing the Department’s process, resourcing and cultural hurdles to development.
Reference Group consists of:
- UDIA NSW
- Property Council Australia
- Hunter Joint Organisation
With input from:
- Department of Planning, Industry and Environment
- Lake Macquarie City Council and Dantia