Security Bonds

Security Bonds are required to be submitted to Cairns Regional Council in order to:

  • Secure the completion and fulfilment of all conditions of a relevant Development Permit;
  • Cover costs that may be incurred as a consequence of uncompleted development obligations, and/or to;
  • Cover the maintenance period of infrastructure to be donated to Council.

Types of bonds

Construction Security Bond

Prior to the commencement of works, the applicant/developer is required to lodge a security bond to the value of 5% of the estimated cost of the construction/works, prepared and certified by the consulting engineer.

The bond is refundable when Council determines the development works have achieved Works Acceptance.

Defects Liability Bond

Once works are completed and Council has granted works acceptance, Council requires a bond, to the value of 5% of the value of the works, to be kept for a period of twelve months or until Council grants Final Works Acceptance.

The bond is refundable following formal acceptance of the development works and the transfer of all applicable infrastructure to Council.

Uncompleted Works Bond

For subdivisional works Council may, at its discretion, approve the bond of uncompleted works to enable the early approval of subdivision plans outlined in the Far North Queensland Regional Organisations Council (FNQROC) Development Manual.

Council may consent to the early approval of subdivision plans, provided the conditions listed in CP1.27 of the FNQROC Development Manual are met.  A bond to the value of 1.5 times the estimated value of the uncompleted works (as certified by the consulting engineer) must be provided in this instance.

The bond is refundable when Council determines the development works have achieved Works Acceptance.  It should be noted that a Defects Liability Bond is then required upon the refund of the Uncompleted Works Bond.

Types of Security Bonds

Bonds submitted to Council may be in the form of either:

  • Cash;
  • Cheque; or
  • Bank Guarantee

Council will not accept any other form of security, such as mortgages, holding Titles to land, shares or insurance bonds, etc.


Cash bonds can be received at Council's Customer Service Centre at 119-145 Spence Street, Cairns.


Bank and personal cheques can incur delays and for any amount may incur delays and the processing of applications will not occur until personal cheques are cleared.

Bank Guarantees

Bank Guarantees should:

  • Be a binding contractual relationship between Council and the guaranteeing bank;
  • Be irrevocable guarantees from a recognised trading bank, approved by Council (guarantees from Finance/Insurance companies and merchant banks are not acceptable);
  • Contain specific requirements for renunciation of the guarantee;
  • Require adequate notice of renunciation; and
  • Include the full and correct real property description to identify the property in which the works are being bonded (e.g. Lots 11 to 22 on Survey Plan No. 123456, cancelling part of Lot 999 on SP100482).

Submission of Bonds

Requesting approval of bond amount

The consulting engineer is required to provide the security (or bond) to Council, accompanied by a Security Lodgement Form (an Appendix of the FNQROC Manual).

Requesting return or reduction of bond amount

Following a satisfactory Final Acceptance Inspection, the consulting engineer shall submit a written request to Council for Final Acceptance of the works and release the Defects Liability Bond.  This formal request must consist of a written submission outlining the reasons for the bond return or reduction.

The minimum details to be included in the request are as follows:

  • Real property description of development;
  • Council file reference for development;
  • Bond amount originally lodged with Council;
  • Name of Trading Bank (Bank Guarantee Bond only);
  • Council receipt number (Cash/Cheque Bonds only); and
  • Date when the original bond was lodged with Council.

The inclusion of the above information will assist in the efficient refund of bonds.

For download

Last updated: 16 June 2020