The Master Builders guarantee, explained in plain English

Building a home is a big commitment, and most of it happens before you can see the finished result. That is why so many people look into the Master Builders guarantee before they choose who to build with. It is a simple idea: an independent guarantee that sits behind the builder, so you have somewhere to turn if things go wrong.

Every home we build is backed by the 10 Year Master Builders Guarantee. Below we explain how it works in general terms. For the full policy wording, the best source is always Master Builders itself.

What is the 10 year Master Build guarantee?

The Master Build 10-Year Guarantee is a residential building guarantee offered through Registered Master Builders, the national association for building businesses. It is not part of the building contract. It is a separate guarantee that you apply for with your builder, and it gives you protection if your builder is unable or unwilling to finish the job or put right defects in their work.

Only Master Builders members can offer it. So the first thing it tells you is that the builder in front of you belongs to the association. If you want to know more about what membership involves, read our post on what a Registered Master Builder is.

What the guarantee covers

Master Builders describes several areas of cover. The exact limits and periods are set out in the guarantee documents, and they can change over time, so treat this as an overview rather than the fine print.

• Non-completion. Help if your builder cannot start or finish the project, up to set limits. This part of the cover is optional.
• Materials and workmanship. Help if your builder will not or cannot fix defective materials or workmanship. Master Builders currently lists this as two years from practical completion.
• Structural defects. Help if the builder's work causes structural defects. Master Builders currently lists this as ten years, which is where the guarantee gets its name.
• Temporary accommodation. A contribution towards somewhere to stay if you need to move out while a claim is being put right.

One important point: the cover carries on even if the builder stops trading. That is the real value of a third-party guarantee. It does not depend on the business that built your home still being around.

Master build warranty or guarantee: what is the difference?

People often search for a master build warranty, and the two words get used as if they mean the same thing. They are related but not identical.

Under New Zealand law, residential building work already comes with implied warranties from the builder, plus a defect repair period after the job is finished. Those warranties are between you and your builder. The Master Build guarantee adds a layer on top. It is backed by Master Builders rather than only by the builder, it runs for longer on structural matters, and it includes cover if the builder cannot finish.

In short, the legal warranties are a baseline every builder must meet. The guarantee is extra protection that only a Master Builders member can offer.

It is not automatic, so apply before work starts

This catches people out. Choosing a Master Builder does not mean you are covered straight away. The guarantee has to be applied for, and Master Builders must approve it before building work begins. Your builder fills in the application with you and submits it, and you are not covered until you receive confirmation.

Master Builders suggests getting in touch with them if you have not heard anything within a couple of weeks of signing. If you decide not to take the guarantee, you sign a waiver to say so.

There is a fee for the guarantee, set by Master Builders on a sliding scale by contract value. For a new home it is usually a small fraction of the overall build cost. Ask your builder to show it clearly in your pricing so there are no surprises.

Why the guarantee matters when choosing a builder

A guarantee is not a reason on its own to pick a builder. You still want someone who listens, prices clearly and builds well. But it does help you compare like with like. When two quotes look similar, it is worth asking each builder:

1. Are you a Registered Master Builder, and can you offer the 10-Year Guarantee?
2. Is the guarantee fee included in your price?
3. Will you complete the application with us before work starts?
4. Which level of cover are you quoting, full or partial?

Good builders rarely need the guarantee to be called on. The aim is to build it right the first time and look after you afterwards. Our build process is set up so you know what is happening at each stage, and you can visit the site and stay involved the whole way through.

“The after care is 100% and they always go the extra mile”

Keep your paperwork together

Once your guarantee is approved, keep the confirmation with your building contract, plans, consent documents and product warranties. If a question ever comes up years later, having everything in one place makes it much easier for you, your builder and Master Builders to work out what applies. It also helps when you sell, because buyers and their lawyers often ask to see it.

If you sell your home

Master Builders has a process for transferring a guarantee to a new owner during the guarantee period. That can be a useful thing to mention when you sell, because a buyer gets the rest of the cover. Check the Master Builders website for how a transfer works.

The practical takeaway

If you are comparing builders, ask about the Master Builders guarantee early, make sure it is applied for and approved before work starts, and keep your confirmation with your house documents. Then focus on the things the guarantee cannot give you: a builder you trust, clear communication and a home built with care.

If you would like to talk through how we work and how the guarantee fits in, get in touch with Jonathan. You can also read client testimonials in their own words.