Frequently Asked Questions - Labour Only Guarantee

On this page you will find our most frequently asked questions about the Master Build 10 Year Labour Only Guarantee. 

 If you would like to talk to us, please contact us on 0800 269 119 or email us at help@masterbuilder.org.nz

 

GENERAL QUESTIONS

The Master Build 10-Year Labour Only Guarantee protects a homeowner when renovating or building a home. This is likely to be the biggest investment they make in a lifetime, and it needs to be protected.

The Guarantee covers the homeowner for ten years and starts at the time they sign the contract. It covers them for Workmanship and Structural Defects. A Guarantee adds value to your property – it is fully transferable if you sell. The Guarantee provides cover not included by general house insurance.

Our Guarantee has protected New Zealand homeowners for 25 years. As New Zealand’s leading building industry association, we will go the extra mile to ensure all builds are completed to high standards.

The Master Build 10-Year Guarantee protects you for ten years from Acceptance of your Guarantee.

This is in line with the Building Act 2004, which also has cover for 10 years but only for specific items and only if the building company is still around.

For two years after your building work is complete our Workmanship cover protects you if there is a problem with the standard of the work carried out by your builder.

For ten years after your application for a Guarantee is accepted our Structural Defects cover protects you if the work carried out by your builder falls short and results in Structural Defects to your home. This includes problems with the weathertightness of your home (including rot and fungal decay).

Our Guarantee is fully transferable if you sell your home.

The cost of our Guarantee will reflect the cost of your build.

Value of Building Contract (inc. GST) Labour Only Cover
$30k-$100k $ 600
$100k-$250k $1,050
$250,000+ Call us

 

Yes you do. Anyone who engages a Registered Master Builder should use our standard Labour Only Building Contract. This contract contains our recommended payment schedules along with other valuable protection. If you’re using a different building contract Master Build Services must receive a full copy of it along with your Guarantee Application.

 

Yes. The Master Build Guarantee is not automatic upon hiring a Registered Master Builder.

It is your builder’s responsibility to offer you the Master Build 10-Year Guarantee.

Once you and your builder have completed all the documentation it will be sent to Master Build Services, and it must be submitted before work starts. The Guarantee is not valid until you and your builder have received confirmation from Master Build Services. If you have not received confirmation within 14 days, please contact us immediately.

Once the building work is finished, both you and your builder must sign a Notice of Practical Completion form and send it to Master Build Services. This ensures that the cover is in place once the building project is finished.

The Master Build Ten-Year Guarantee protects you for 10 years from the date your Guarantee application is accepted.

For two years after your building work is complete our Workmanship cover protects you if there is a problem with the standard of the work carried out by your builder or with the materials used.

For ten years after your Guarantee application is accepted, our Structural Defects cover protects you if the work carried out by your builder falls short and results in Structural Defects to your home. This includes problems with the weathertightness of your home including rot and fungal decay.

Please note: Only work carried out by your Registered Master Builder is covered by the Guarantee. Anything you do yourself or get anyone else to do is not covered.

Please be sure to read your Guarantee to ensure you are aware what you are covered for, or contact us on 0800 269 119 or email us at help@masterbuilder.org.nz

Please be aware that each Master Build Guarantee can be tailored to your needs. Please make sure you read and understand what you are – and what you are not - covered for.

The Master Build Guarantee will not cover:
  • Any items on a Multi-Unit Development
  • Anything that is not your builder’s responsibility (including work, services, materials or chattels that are not part of the Building Contract OR that you have arranged or paid for directly).
  • You, if you are both the owner and the builder or if you are an associate of the builder
  • Issues or claims that are covered by insurance (for example contract works insurance, home and contents insurance and/or professional indemnity insurance).
  • Consequential damage to your home, including damage that has happened as a result of a Defect that is part of any claim under your Guarantee.
  • Consequential losses, including losses that happen because of a Defect that is part of any claim under your Guarantee. This includes travel expenses and legal costs.
  • Unavoidable aesthetic variance.
  • Items that are not a part of or directly connected to your home (such as swimming pools, driveways, paths, lawns, gardens or fences, external drainage and retaining walls that are not part of the building’s foundation).
  • Buildings that have been moved from their original, permanent Property.
  • Managed labour-only contracts (where your builder is managing the building site but does not provide the materials or labour, or where the people carrying out the work are not your builder’s sub-contractors or employees).
  • Agreed deviations (where you and your builder have chosen not the follow the Building Contract, the building consent, or relevant building trade practices and standards during the building work).
Any Damage or Defect that:
  • You already knew about or should have known about.
  • Is caused by normal wear and tear
  • Is beyond the reasonable control of your builder (such as subsidence, erosion or soil movement, condensation, shrinkage, contraction or expansion of any material, and act of God.)
  • Is caused by anything related to design or engineering work including the use of non-approved materials.

 

For a full set of Terms and Conditions please contact your builder or Master Build Services on 0800 269 119

 

Please ask your builder or contact Master Build Services on 0800 269 119 if you would like more details about the Master Build Labour Only 10-Year Guarantee.


COVER AFTER YOUR BUILD IS COMPLETE

The Master Build 10-Year Labour Only Guarantee is designed specifically for Labour Only contracts. 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 value of your Building Contract (up to a limit of $250,000 or the contract price, whichever is less).

Our Workmanship cover protects you if there is a problem with the expected standard of the work carried out by your builder or with the materials that have been used in the building work.

This includes where your 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.
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    It is important to read the Guarantee Terms and Conditions and understand what you are covered for.

    However, for a labour-only contract, the materials used in the building work are not covered.

     

    If your Guarantee covers a defect in workmanship, this cover is for defects that have been identified after your building work is finished.

    It begins on the Practical Completion Date and ends two years after that date.

     

    Please contact your builder as soon you discover a problem.

    If you believe you have a claim under workmanship or structural cover, you must:
    • notify us no later than 30 days after the date you became aware of the problem; and
    • make a claim on the official claim form no later than 14 days after notifying us of the problem; and
    If you don’t lodge a claim within 14 days of notifying us of the problem, we are not liable for any existing or future claim for the problem you notified us about.

     

    After you make a claim we will do a thorough investigation and assess your claim. If the claim is valid, we will tell your builder to fix the Defect. There will be a set timeframe for your builder to fix the Defect (sometimes we may agree to give them an extension to the timeframe if it is appropriate).

    If your builder doesn’t fix the Defect within the timeframe set (or any extension) you must contact us no more than 30 days after the date the work was due to be completed.

    To make sure you are comfortable and understand the process, please contact us on 0800 269 119 or email us at help@masterbuilder.org.nz.

     


    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.

     

    Please contact your builder as soon you discover a Defect.

    Unless your builder has completed all work to fix the Defect, you must:
  • notify us no later than 90 days after you became aware or should have become aware of the Defect; and
  • make a claim on the official claim form no later than 14 days after notifying us about the Defect.
  •  

    After you make a claim we will do a thorough investigation and assess your claim. If the claim is valid and remedial work is needed, we tell your builder to fix the Defect. We will set them a timeframe to do this - sometimes we may agree to give them an extension to the timeframe.

    If your builder doesn’t complete the remedial work within the agreed timeframe, you must let us know no later than 30 days after the work was due to be completed.

    If your builder is unwilling or unable to fix the Defect, we may accept the claim and help you get the Defect fixed.

     

    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 help@masterbuilder.org.nz.

     


    MAKING A CLAIM AFTER YOUR BUILD IS COMPLETED

    As soon as you discover a Defect that may lead to a claim under the Guarantee, you must notify your builder in writing to give them the chance to fix the problem. You must then let us know about the Defect and confirm that you have also contacted your builder.

    Unless your builder has completed all work to fix the Defect, you must:
    • notify us no later than 90 days after you became aware or should have become aware of the Defect; and
    • make a claim on the official claim form no later than 14 days after notifying us about the Defect.
    • These timings apply regardless of any agreement you have come to with your builder about fixing the Defect.
    If you don’t make a claim within 14 days of telling us about the Defect, we are not liable for any existing or future claim for the Defect.

     

    After you make a claim we will do a thorough investigation and assess your claim. If the claim is valid and remedial work is needed, we will get your builder to fix the Defect. We will set them a timeframe to do this (and sometimes we might agree to extend this timeframe).

    If your builder agrees to fix the Defect, we’ll let you know and give you a date for the work to be completed. If your builder doesn’t fix the Defect within that timeframe (including any extension) you must tell us no later than 30 days of the date the work was due to be completed.

    If your builder can’t or will not comply with our instruction to fix the Defect, we may accept the claim and help you to get the Defect fixed. We’ll notify you whether your claim has been accepted or declined.

    If your claim is accepted we work with you either to select a replacement Registered Master Builder to fix the Defect or to pay you a cash settlement for the reasonable value of the loss or damage you have incurred.

    MBS has sole and absolute discretion as to whether to select a replacement Registered Master Builder or pay a cash settlement.

    We agree with you the work that needs to be done, and then we decide whether to repair or replace the Defect and how the work will be carried out.

    Where we choose to select a replacement Registered Master Builder to fix the Defect, the replacement builder provides a price for the work, and you enter into a new Building Contract with them. Once the new Building Contract is entered into, we are not liable for any additions or changes to the work, unless we have given you written approval for these.

    If we choose to pay you a cash settlement, then we will pay you the reasonable value of the loss or damage you have incurred.

     

     

    If you decide to sell your property, you can transfer your Guarantee. This is a great selling point if you decide to sell your home.

    A Guarantee can be transferred multiple times within its 10-year term – but this does not extend the period of cover.

    All transfers need our approval. Here’s what you need to do: Your property’s new owner must fill out and sign a Request for Transfer form. They are expected to have:

    • made a full inspection of the home
    • accepted that we will not be liable for any Defects that could have reasonably expected to be discovered during that inspection.

    The completed Request for Transfer form must be sent to us within 90 days of settlement of the purchase along with:

    • a copy of the Sale and Purchase Agreement for the Property; and
    • the transfer administration fee of $350 (including GST)

    We’ll let you know if your Request to Transfer your Guarantee has been accepted or declined.

    To make sure you are comfortable and understand the process, please contact us on 0800 269 119 or email us at help@masterbuilder.org.nz