Latent Defects Insurance 101: What is the Technical Inspection Service (TIS) Program

The construction industry demands meticulous attention to quality and compliance, and the Technical Inspection Service (TIS) has emerged as a critical component in achieving these standards.

Designed to assess and enhance building quality, the TIS program plays a pivotal role in reducing risks, securing Resilience Latent Defects Insurance (LDI), and ensuring long-term confidence in construction projects.

Unlike traditional certification systems, the TIS sits above existing frameworks, providing an independent, comprehensive layer of quality assurance. By proactively identifying and rectifying potential issues during the construction process, the TIS sets a new benchmark for industry accountability. 

Read more: What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?

What is the Technical Inspection Service (TIS)?

The TIS program is an independent, third-party review process that monitors and evaluates a building’s design and construction. Its purpose is to ensure compliance with local codes, regulations and best practices, while also addressing risks that other systems might overlook. By integrating regular inspections and detailed assessments into every stage of construction, the TIS significantly reduces the likelihood of latent structural defects—issues that become apparent only after project completion.

This proactive approach is a mandatory requirement for obtaining Resilience LDI, which provides 10 year protection for property owners against hidden structural and waterproofing defects.

How the TIS Sits Above Traditional Systems

While standard certification systems focus on verifying compliance with minimum regulatory requirements, the TIS goes beyond by offering a deeper and more comprehensive review of the construction process. Key distinctions include:

- Independent Oversight: Unlike certifiers who may work closely with project teams, the TIS providers operate independently, ensuring unbiased and rigorous assessments.

- Enhanced Quality Assurance: the TIS program focuses on potential risks that may not be detected by standard certifiers, such as detailed evaluations of waterproofing, structural integrity, and geotechnical considerations.

- Integrated Risk Management: By addressing risks proactively, the TIS complements and strengthens existing certification processes, adding a robust layer of oversight.

Key Components of the TIS Program

1. Design Risk Assessment

Before construction begins, the TIS provider conducts a comprehensive review of the project’s plans, specifications, and structural designs. This ensures that potential flaws are identified and resolved at the earliest stage, preventing issues from arising during or after construction.

2. Regular Site Inspections

Throughout the construction process, the TIS program involves regular spot audits and scheduled inspections at critical milestones. These inspections verify that the building adheres to the approved plans and meets the highest quality standards. Issues are identified and corrected in real-time to minimise delays or risks.

3. Detailed Quality Assurance Reporting

Each inspection is followed by a detailed report, providing transparency and actionable recommendations. These reports are shared with project teams, ensuring any concerns are promptly addressed and resolved.

4. Final Completion Review

At the end of construction, a final detailed review is conducted to certify that the building meets all requirements for Resilience LDI coverage. This certification provides the assurance needed to secure the policy.

The Added Benefit: 10 Years of Protection

One of the most compelling aspects of the TIS program is the 10-year protection it provides through its alignment with Reslience LDI. This long-term coverage ensures that any structural and waterproofing issues missed during the construction and inspection phases are addressed without financial burden on property owners.

For buyers, developers, and financiers, this decade-long protection adds a layer of confidence rarely matched by traditional systems. Knowing that issues arising years later will be covered fosters trust in the project and enhances its value in the market.

How the TIS Program Facilitates Resilience LDI

Resilience LDI provides property owners with coverage for latent defects, such as structural or waterproofing issues, that may emerge years after project completion. To qualify for Resilience LDI, compliance with the TIS program is mandatory. By addressing potential risks and certifying the quality of construction, the TIS program ensures that projects meet the stringent requirements necessary for Resilience LDI coverage.

Why Developers Should Embrace TIS

- Enhanced Marketability: Projects with TIS-backed, Resilience LDI coverage are viewed as safer investments, attracting buyers and investors who prioritise quality and risk mitigation.

- Streamlined Risk Management: The independent, proactive approach of the TIS program reduces the likelihood of costly repairs, legal disputes or reputational damage.

- Higher Valuations: Properties backed by Resilience LDI often achieve higher market valuations due to their perceived quality and reduced risk profile.

- Improved Buyer Confidence: The 10-year protection provided by Resilience LDI reassures buyers, making properties more appealing and easier to sell.

TIS: A Step Toward Better Industry Standards

The Technical Inspection Service represents a significant shift in how the construction industry approaches quality assurance. By providing a rigorous, independent layer of oversight that complements existing systems, the TIS program ensures that projects meet the highest standards of safety, durability, and reliability.

For developers, embracing the TIS program isn’t just about meeting insurance requirements—it’s about building trust, enhancing marketability, and delivering long-term value. As the Australian construction industry evolves, Resilience LDI and the TIS program will play a crucial role in shaping a future defined by accountability, quality, and confidence.

Resilience LDI may be the safety net, but the Technical Inspection Service is the foundation that makes it possible. Together, they represent the future of construction assurance.