Builtin’s Commercial Defects Guarantee covers new commercial construction up to a contract value of $5,000,000, and is fully underwritten by CBL Insurance Limited, a licensed New Zealand insurer.

It covers building defects, including water ingress, for 10 years from the end of the period of defects liability (maintenance period), and is well proven overseas, where it is known as inherent defects liability, latent defects liability or post construction liability.

As the owner of a commercial building the last thing you want to experience is serious defects in the structure. Unfortunately, sometimes this happens, and it can cost tens of thousands of dollars to rectify, not to mention the loss of rents and potential compensation for other losses.

The defects could be due to any combination of faulty design, poor workmanship and the wrong or poor quality materials, and in most circumstances can be attributed to the parties involved in its construction, for instance the architect, engineer, contractors or product suppliers.

The problem for building owners is that disputes often arise in assigning specific responsibility for defects, and there can be uncertainty over the ongoing financial resources of participating parties, in some cases they may even have become insolvent (eg. Mainzeal).


​The Guarantee also gives builders and project managers a further edge to win commercial contracts by guaranteeing owners immediate defect resolution, regardless of cause, through an independent, third party guarantee.


  • Immediate defect resolution, with responsibility being determined afterwards
  • Fixes defects, including weathertightness and water ingress, for 10 years from the end of the contractual maintenance period
  • Guarantees to resolve defects even if the responsible party can’t be found (eg. due to liquidation)

Cover can be applied for at any time up until practical completion. For more information contact us on 0800 BUILTIN or email guarantee@builtin.co.nz.

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