About the Guarantee
The Master Build 7 year guarantee can only be offered by a Registered Master Builder. The guarantee covers residential building work with a contract price of $25,000 and over and has 3 key areas:
- loss of deposit or non-completion
- defects in material and workmanship
- structural defects
How do you apply?
To ensure the guarantee is in place, you need to:
- request a guarantee document from you resitered master builder
- fill out and sign the application form on page 5 with your builder. your builder will then submit your application to mbs
- make sure you have received a written notice of acceptance from mbs (usually within 14 days). if not, call mbs immediately on 0800 269 119
Note: the guarantee will not be valid unless it is accepted and signed by MBS.
What are you covered for?
Either
Loss of deposit
Up to 5% of the contract price to a maximum of $20,000, if the permanent work has not started.
Or
Non-completion
Up to 10% of the contract price to a maximum of $30,000 if the house or work is not finished.
Plus
Defects in materials and workmanship and structural defect
Protection against any defects in workmanship and materials* or structural elements, for 2 years after completion of the building.
Plus
Limited structural cover
Cover for defects in specific structural elements of the building work, after expiry of the materials, workmanship and structural cover, for a total cover of 7 years from acceptance of the Guarantee.
Maximum total payout for all cover is $100,000 including GST.
What are your obligations?
Like any guarantee of this kind it is important that you do a number of things to ensure that you are covered:
- Read the Guarantee document completely (in particular, page 4) to ensure you understand the Terms and Conditions
- Make sure you have received the written acceptance from MBS (usually within 14 days)
- If you have an issue with workmanship on your home, you must let MBS know within 90 days
- During construction, be careful not to pay for more than the value of the work that has taken place (see the staged payments schedule on page 19 of the Guarantee document)
*Materials which have a current certificate of accreditation or product certificate issued under the Building Act, or which, in Master Builder Services’ opinion, comply with an appropriate Australian or New Zealand standard.
