Damage bonds

Midcoast Council requires the payment of a damage bond for developments, including:

  • demolition of a work or building
  • erection of new buildings
  • additions
  • sheds
  • swimming pool installations
  • subdivisions  

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 fee is detailed in Council’s Fees & Charges.

Damage Bond Application Form(PDF, 282KB)


Preliminary inspection

Council's responsible officer will undertake a preliminary inspection prior to commencement of the development.

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 attach a written submission / photographs.

Final inspection

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

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

In the case of swimming pools or excavation, the bond will be considered for refund when the applicant advises that the works are completed and have met 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 required 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 involved will be charged to the applicant.

Refund of damage bond

It is the responsibility of the applicant to advise Council when construction works are completed and damage bond is due for refund.

Following a satisfactory final inspection, the Damage Bond, minus the administration/inspection fee and any other additional inspection fees applicable, will be refunded (within 28 working days from date of request).

The refund payment will be direct deposit to the original drawer.

Council will request the bank details at the time of the refund.

If the bond has been held by Council for longer than 12 months, interest will be paid in accordance with Council's relevant adopted Procedure.

If the applicant wishes the payment in another name, a written request must be forwarded to Council prior to refund of the bond.

Note: If Damage Bond is not claimed within 10 years from application date, an attempt to contact the applicant will be made. If contact is unsuccessful, Council reserves the right to consider the bond forfeited.

Submit your bond refund request