When is a Registered Master Builders Guarantee not a guarantee?
Just because you're using a Registered Master Builder (RMB) does not mean your new build automatically comes with the famous Master Builders Guarantee, and that's because your builder needs to apply specifically for your house (on a project-by-project basis) before commencing the new build.
Auckland and New Zealand media are littered with stories where Kiwis building a new home were left high and dry because they assumed that hiring an RMB meant they were also buying the guarantee. Sometimes, their builders talked about the guarantee during the sales process but never applied for it.
American writer Claudia Gray says, "It's not the things you don't know that trip you up. It's the things you think you know, but you don't. You fail to ask a certain question because you believe you know the answer. Separating your information from your assumptions can be very tricky business."
It is true that Registered Master Builders (RMB) are builders backed by the Registered Master Builders Association. This body works with the government and the building sector to develop and uphold high standards in the industry (for example, if you have any problems with your build, you can contact RMB for assistance).
It is also true that RMBs must meet specific criteria to be assessed before becoming a member, such as their experience, qualifications, workmanship and financial health. Using a builder with an RMB accreditation can give homeowners some peace of mind, but that's not the same thing as a guarantee.
The Registered Master Builders Association (RMB) offers its members a Master Builder Guarantee (for example, your new home builder of choice). Still, to be eligible for the Master Builder Guarantee, builders must apply for it before commencing work on a new build project. You should always check with your builder to ensure they will arrange a guarantee for your project--get it in writing.
What does the Registered Master Builders Guarantee cover?
Once you are covered by the guarantee, you will find it extends protection for two stages of your project: during and after the build.
Areas of cover include loss of deposit, non-completion, structural defects, material, and workmanship. The guarantee may also be tailor-made, so it's essential to discuss it with your builder and ensure you know exactly what is and isn't covered in your specific guarantee.
During the build: loss of deposit
Builders risk losing their deposit if they don't deliver on their promises, so the RMB Registered Master Builders Guarantee covers you if they don't finish the job.
It's important to note that the Registered Master Builders Guarantee does not apply the guarantee only if the builder doesn't turn up. If your builder doesn't finish the project, you can claim your deposit back. If there's a dispute in relation to the completion of the project, you can lodge a complaint with the RMB to have the dispute resolved. If the dispute resolution doesn't result in a settlement, you can claim to get your deposit back.
Non-completion
The Registered Master Builders Guarantee covers you if your builder doesn't finish the project in the agreed time frame. In this instance, you may be entitled to final payment or have the contractor finish it at their expense.
Structural defects
The RMB Guarantee covers defects in the building's foundation, structure, or subflooring. The guarantee doesn't cover superficial issues like paint or wallpaper peeling or cracking tiles.
Material and workmanship
The Registered Master Builders Guarantee also covers defects in materials.
In conclusion, ask questions of your builder. Get answers in writing about whether they have applied for the Master Builders Guarantee, whether or not they are insured and if any other policies or guarantees cover you. Never assume. Always establish the facts.