This guarantee gives builders and project managers a further edge to win commercial contracts by offering owners immediate defect resolution.

Our Commercial Defects Guarantee covers buildings up to a contract value of $5,000,000, and is fully underwritten by CBL Insurance Limited.

It covers major structural defects for 5 years from the end of the period of defects liability (maintenance period), which is generally 3 to 6 months, and is well proven overseas, where it is known as inherent defects liability, latent defects liability or post construction liability. 

In the majority of circumstances, responsibility for defects in a building can usually be attributed to one or a number of parties involved in its construction (contractors, architects, engineers, product manufacturers etc). The defects can be due to any combination of poor workmanship, incorrect or low quality materials and/or faulty design. Disputes often arise in assigning specific responsibility for defects, and there can be uncertainty over the ongoing financial resources of participating parties.

The Commercial Defects Guarantee cover gives owners and other interested parties (such as mortgagees) confidence that in the event that there is a problem with the building, we will step in and repair the damage immediately, and later seek recovery from responsible parties.

The guarantee can be transferred to new owners if the building is sold, which gives it huge appeal to owners when selling their property, and indeed to prospective buyers.

The cover can be applied for at any time up until practical completion.


Contact us on 0800 BUILTIN or email guarantee@builtinnz.co.nz.

Click here to download an application form.