Frequently Asked Questions
Why did Builtin & SOPAC stop issuing new guarantees?
Underwriters assess risk using many different indicators. These help inform their decisions on whether or not to cover any given risk, and if so for how much and on what terms. In early 2022 economic conditions, including inflation, supply chain challenges and increasing construction sector insolvencies both here and in Australia led to their decision to cease writing new business.
Underwriters assess risk using many different indicators. These help inform their decisions on whether or not to cover any given risk, and if so for how much and on what terms. In early 2022 economic conditions, including inflation, supply chain challenges and increasing construction sector insolvencies both here and in Australia led to their decision to cease writing new business.
I already have a guarantee, how am I affected?
All guarantees issued before 1st July 2022 remain in force and are unaffected by this decision. They continue to be underwritten by SOPAC until expiry, subject as always to the terms and conditions of the guarantee. The only change is that administration of existing guarantees has been transferred from Builtin New Zealand Limited to us.
All guarantees issued before 1st July 2022 remain in force and are unaffected by this decision. They continue to be underwritten by SOPAC until expiry, subject as always to the terms and conditions of the guarantee. The only change is that administration of existing guarantees has been transferred from Builtin New Zealand Limited to us.
What do I do if I think I may have a claim?
The wording states that claims for non-completion of the building contract may be triggered by the following events:
a) The Builder dies, disappears without trace for at least 42 days, or becomes legally incapacitated, or
b) The Builder is put into bankruptcy, receivership, liquidation or administration, or the Builder enters into a Scheme of Arrangement with its creditors, or
c) The Builder’s registration as a builder, either directly or through a company, under any statutory scheme is suspended or cancelled, or
d) The Builder wrongfully fails or refuses to rectify Defects to the Building Works that arise during the course of the Building Works.
If any of the above events has occurred and you believe your building contract may not be fulfilled please contact us immediately.
Claims for defects in the building work may be triggered by the following events:
i) The Builder fails to rectify the Defect within a reasonable period of time, or
ii. The Builder fails or refuses to try to resolve a dispute with the Building Owner about the Defect by using a dispute resolution service or other legal process, or
iii. The Builder fails to comply with a decision of the dispute resolution service or other legal process.
If you identify a Defect and any of the above conditions has been met please contact us immediately.
It is important to note that the guarantee is not insurance. It operates to guarantee the obligations of the builder and as such the primary responsibility for completion and defects rests with the builder. In the first instance if you think you have identified a Defect please contact your builder.
The wording states that claims for non-completion of the building contract may be triggered by the following events:
a) The Builder dies, disappears without trace for at least 42 days, or becomes legally incapacitated, or
b) The Builder is put into bankruptcy, receivership, liquidation or administration, or the Builder enters into a Scheme of Arrangement with its creditors, or
c) The Builder’s registration as a builder, either directly or through a company, under any statutory scheme is suspended or cancelled, or
d) The Builder wrongfully fails or refuses to rectify Defects to the Building Works that arise during the course of the Building Works.
If any of the above events has occurred and you believe your building contract may not be fulfilled please contact us immediately.
Claims for defects in the building work may be triggered by the following events:
i) The Builder fails to rectify the Defect within a reasonable period of time, or
ii. The Builder fails or refuses to try to resolve a dispute with the Building Owner about the Defect by using a dispute resolution service or other legal process, or
iii. The Builder fails to comply with a decision of the dispute resolution service or other legal process.
If you identify a Defect and any of the above conditions has been met please contact us immediately.
It is important to note that the guarantee is not insurance. It operates to guarantee the obligations of the builder and as such the primary responsibility for completion and defects rests with the builder. In the first instance if you think you have identified a Defect please contact your builder.