Guarantees and insurance for the building industry

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Real examples of what can go wrong during the building process

Here are a selection of real examples of how the Homefirst Builders Guarantee has helped a homeowner complete their building project when their builder has been unable to do so.

Dunedin (builder went into liquidation)
Following the insolvency of a builder doing alteration work on a house in Dunedin, Builtin stepped in to arrange completion of the project on behalf of the homeowner.  They appointed a new builder who was on site within a month of the previous builder going into liquidation.  Given that a new builder can only be instructed following completion of the liquidation process, this was a highly satisfactory result for the homeowner.  The guarantee also contributed $25,000 towards the cost to complete the job.




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Bay of Islands (builder died)
Shortly into a complex new build the main builder became ill and died.  His estate tried to carry on operating the building company.  Unfortunately, without its key person, who generated new income and managed and supervised its multiple projects, it was forced into liquidation.  This resulted in a non-completion claim on the guarantee and Builtin stepped in to arrange completion on behalf of the homeowner.


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Christchurch (builder in accident)
As a result of a serious boating accident the builder was off work for more than 8 months.  He was unable to supervise his jobs or generate new income for his building company.  As a result it was forced into liquidation, leaving a number of homeowners with unfinished houses.  Fortunately for those with guarantees, Builtin arranged completion, as well as contributing to the cost of finishing the build.


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Tauranga (builder moved overseas)
Two years following a successful build completion a serious structural defect was identified in a Tauranga home.  The builder responsible had subsequently moved overseas and could not be found.  Because the homeowners had purchased a guarantee they were able to make a claim and Builtin arranged and paid for the necessary remedial work.



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Wellington (builder went into liquidation)
A Wellington couple were building a small apartment complex when their builder went into liquidation as a result of fraud by a company director.  They were able to claim on their guarantee for non-completion, which contributed $100,000 towards the cost of finishing the job.






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Auckland (poor sub-contractor workmanship)
A North Shore couple were undertaking substantial alterations and modernisation of their home.  Poor workmanship by sub-contractors led to serious twisting in a load bearing wall that had to be replaced.  Ultimate responsibility fell to the project manager, who did not have the right set of skills to adequately assess the sub-contractors’ work.  The couple claimed on their guarantee and this was approved by Builtin.


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Whakatane (defective materials)
Less than two years after the completion of their new home a Whakatane couple observed that their exterior paint had begun to fade.  The product used, from a well known paint manufacturer, was guaranteed for seven years, so the couple made a claim on their guarantee for “non-structural defects”.  Builtin contacted the paint manufacturer on their behalf, who agreed to a deal directly with the homeowner to replace it.


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Click here to find out how you can apply for a Homefirst Builders Guarantee.