How much does it cost?
The Master Build Guarantee usually costs less than 1% of the total build cost.
The tiered pricing structure means the purchaser of the unit gets the right level of protection based on the total build cost of their unit. The below costs reflect the price for each unit, not the entire development.
|Total build cost per unit (inc. GST)
||Multi-unit cover cost (inc. GST)
The Guarantee will be transferred into the name of the first purchaser at no cost. The cost of transferring the Guarantee if the first purchaser sells the unit is $350.00 (including GST).
WHAT ARE THE CHANGES FOR 2023?
Why is the update needed?
More multi-unit homes are now being consented than standalone houses, and we are also seeing growing demand for the Master Build Multi-Unit Guarantee to cover these projects. We support these developments, and we also recognise that they have their own unique risks that differ to typical residential building projects. To address this, we have updated the Master Build Multi-Unit Guarantee to manage the higher risks that come with these large scale developments and ensure that quality is included at every stage of the build process.
What has changed?
We have updated the 10-Year Master Build Multi-Unit Guarantee to streamline and clarify the application process and criteria. As with all our guarantees this includes ensuring the builder is in a strong financial position, with a good history of similar developments. We will also assess the plans for the development to ensure they are sound and do not include any high-risk elements, particularly concerning weathertightness. We engage an independent building consultant, Maynard Marks, to review and assess each application. This process provides an additional level of rigor and risk management for your development and will be a strong selling point for homebuyers.
What does the new design criteria cover?
The design criteria has a strong focus on mitigating weathertightness risk. Plans for each development will be reviewed by an independent engineering expert against the E2/AS1 building code for external moisture. We have developed our criteria around elements that must be present, those that are prohibited, and those that should be kept to a minimum. This criterion will be a strong selling point for homeowners.
Must have elements include a cavity, a rigid air barrier, a pitched metal roof, eaves, and gutters that must be able to visually overflow in the event of a blockage.
Prohibited items include roof pitches of less than 5 degrees, decks over internal spaces, curved metal roofs, multi-level retaining, horizontal/stacked apartments, and developments of more than three levels.
The elements will also be assessed against the E2/AS1 code, where a maximum adjusted score of 13 is required. The adjusted E2/AS1 is the score assessed by the independent building consultant less the storey score. This is to ensure a fair and consistent approach across all applications.
Will this impact the guarantees I already have in place?
We are updating you now to ensure you have the next six months to prepare for when the new criteria comes into place on 1 January 2023. This means you will have time to discuss the new criteria with your designers, architects, and clients. We recommend you adopt the new criteria as soon as practical for upcoming developments. We will be assessing applications received between now and 1 January 2023 against this new criteria, but developments which are outside of this criteria can still receive a guarantee. Properties that already have a Master Build 10-year Guarantee will continue to have cover.
Master Builder members can access more information and application forms on our members only website. Alternatively, you can give the guarantees team a call on 0800 269 119.
COVER AFTER YOUR BUILD IS COMPLETE
What am I covered for?
The Master Build Ten-Year Multi Unit Guarantee is tailored to meet your needs. Therefore, it is important to read and understand what you are covered for.
The maximum cover for all claims throughout the life of a guarantee is the total build cost of the unit or;
- $200,000 1 bed/studio
- $225,000 2 bed
- $250,000 3 bed
- whichever is less
Our Materials and Workmanship cover protects the purchaser of the unit if there is a problem with the expected standard of the work carried out by the builder or with the materials that have been used in the building work.
This includes where the builder has failed to:
- Comply with your Building Contract and the building consent; or
- Follow relevant building trade practices and standards that were in place when your building consent was issued; or
- Comply with any relevant laws that apply to the building work; or
- Comply with any relevant instructions or recommendations by the manufacturer or supplier of any materials used in the building work that were in place at the time the material was installed or used.
COVER FOR STRUCTURAL DEFECTS
It is important to read the Guarantee Terms and Conditions and understand what you are covered for.
Cover for structural defects protects you if an issue with the expected standard of the work carried out by your builder results in Structural Defects to your home, including a problem with the weathertightness of your home (Rot and Fungal Decay).
Structural Defects include damage which makes your home unsafe, unsanitary or uninhabitable.
To be covered for Rot and Fungal Decay, the design, materials, and construction of your home need to achieve a score of 12 or less in the “Building envelope risk matrix” at the time the building consent was issued. The building envelope risk matrix is in the Ministry of Business, Innovation and Employment’s Acceptable Solution E2/AS1, which can be found on www.building.govt.nz.
What is not covered by the Master Build Multi-Unit 10-Year Guarantee?
We will not be liable for any claim under Structural Defects cover if:
- The building work in the claim does not have the required building consents;
- It does not comply with the Building Code or any building consent documents.
- If you would like to talk to us, please contact us on 0800 269 119 or email us at firstname.lastname@example.org.