The Master Build Guarantee is a 10-year protection contract for the purchaser of a New Build home.
It replicates many of the same benefits you get anyway under the law, but there are some extra benefits. That’s especially true if you have a progressive payment build contract.
For example, with Master Build:
- If your builder goes bust, they will refund your construction deposit (up to 10% of the building price).
- if your builder goes bust halfway through the build they’ll find another builder to finish it.
This is called “non-completion” coverage. In our view, here at Opes, this is the main benefit.
There are some other benefits to the Master Build Guarantee: let’s say your builder has shut their business down and there is a structural issue with your property.
Master Build will organise for another builder to fix it.
You get protection for this situation under the Building Act anyway. But under the law you have to hunt down your old builder. With Master Build, they’ll find a builder for you.
Is paying for these benefits worth it? If you have a higher-risk progressive payment build – then probably, yes.
But if you’ve got a turnkey build, we here at Opes don’t think this guarantee is necessary. There are other ways to protect yourself.
Shane Campbell, a lawyer at Wynn Williams, says the coverage is not as comprehensive as most people think.