Notice of Withdrawal of 10 Year Builders Guarantee
From the 1st of July 2022 Builtin has suspended issuing 10 Year Builders Guarantees.
Risk conditions in the construction industry have worsened over the past 6 months. The recent insolvency of some of Australia’s largest residential home builders is likely an indicator of things to come, with a similar trend seen here. The causes are well known, significant materials inflation combined with labour and supply chain constraints are putting intense pressure on builders’ working capital.
Following an assessment of these economic conditions and after discussion with the Guarantee surety we have agreed to suspend the Guarantee line of business.
For Accredited Builders
To support our customers, we are continuing to assess applications for Guarantees relating to building contracts signed prior to the 10th of June. Contracts signed after this date will not be eligible for a Guarantee and all applications must be received by 30th June.
This interim period is to give customers time to secure an alternative provider. There are a number of options available:
a. Registered Master Builders, masterbuilder.org.nz (completion and defects)
b. NZ Certified Builders Association, nzcb.nz (defects only)
c. Stamford Insurance, stamfordinsurance.co.nz (defects only)
Guarantees that have already been issued are unaffected by this change and continue to be underwritten by Southern Pacific Insurance Corporation (SOPAC).
A dedicated company, Guarantee Management Limited, has been engaged to provide the ongoing administration for all existing Guarantee policy holders.
This decision was not made lightly, we appreciate that this change may present a short term challenge to our clients while they find an alternative provider and for this we apologise.
For Existing Guarantee Policyholders
Nothing changes and your Guarantee continues to be underwritten for its full term by Southern Pacific Insurance Corporation (SOPAC).
Should you need to make a claim, apply to transfer your Guarantee or for any other enquiry please contact:
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Guarantee Management Limited
0800 200 216
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Guarantee Management specialise in the administration of insurance and related products that have been discontinued but where existing policies remain in force.
Your Guarantee contract is an important document and should be kept safe. Please note these new contact details with your Guarantee.
For answers to frequently asked questions please visit: www.guaranteemanagement.co.nz/faq