Important Information about the Labour Only Guarantee

In 2018 we launched the Labour Only Guarantee as a way of better communicating to homeowners the limited cover provided under this guarantee.

At the end of 2020 we carried out an extensive review of the Labour Only Guarantee and following feedback from homeowners, lawyers, and real estate agents regarding the limited cover it provides and the confusion it creates for the new purchasers of properties, have decided that we will no longer offer cover for Labour Only building contracts from 28 February 2021.

This will also include contracts where there is a Labour Only contract with small material components provided e.g. doing a labour only foundations, frames and trusses, and providing foundation materials.

While we understand this may be frustrating for some members, we needed to make this difficult decision so we can provide homeowners with clear and transparent products and services that they value. 

From 28 February 2021 new guarantee applications will no longer be available for Labour Only contracts.


FAQ’s

Most contracts I signed with the owners are Labour Only Contracts, your decision will be having a big impact on my business. Are there any alternatives?  

Unfortunately moving forward none of the Master Build Guarantee’s will support a labour only contract, new purchasers of the properties find these types of guarantees confusing as they are very limited in the cover that they provide. 

For some reason I didn’t lodge the applications before 28 Feb 2021, but my contracts were signed before the date. Is it possible to accept my applications as one-off?

We must receive the guarantee application before the 28 February 2021, any applications received after this date will not be accepted.

What does removal on 28th Feb actually mean? 

We must receive the guarantee application before the 28 February 2021, any applications received after this date will not be accepted.

What options are available if my client does want a guarantee over labour only work I am doing?

Unfortunately moving forward none of the Master Build Guarantee’s will support a labour only contract. They will still have some limited cover under the Building Act.

What does this mean to a Labour Only guarantee I have applied for or that has already been accepted?

Any applications that we have received before the 28 February 2021 will be processed as per normal.

I am halfway through a labour only build and now that you have withdrawn the product, can I cancel my guarantee and get my money back? 

Any guarantee that has already been approved will remain in place and cannot be cancelled or refunded.

Will I still be able to access the Labour Only Building Contract?

Yes, the Labour Only contract is not affected, only the Labour Only Guarantee.

If you have any further questions please call the team on 0800 269 119.