Why do one in three homes now being built in New Zealand carry a Master Build Guarantee?
Registered Master Builders have traditionally enjoyed a very strong market share of the residential building sector, and it has been interesting to watch this market share continually grow throughout the recent recessionary years.
Data from Master Build Guarantee sales indicate that more discerning clients are choosing to use a Registered Master Builder to build their home, and one of our Guarantees to protect their investment.
The Master Build Guarantee completely dominates the New Zealand home warranty sector, with four times the market share of anyone else. So why do so many clients want this product?
There is no doubt that consumer confidence in the building industry has been severely dented by the leaky building saga, and clients are wary about who they engage with to build their homes — and who could blame them?
The 2004 Building Act and subsequent amendments have gone a long way to remedying the systemic problems this industry faced.
A tightening up of the building code and the introduction of the Licensed Building Practitioner (LBP) scheme are important steps forward in winning back the public’s confidence.
Personally, I think the LBP scheme will, once and for all, exit the incompetent operators out of our industry and allow the good builders to do what they do best — produce good quality homes for their clients.
Perhaps the last piece of the puzzle for ultimate client protection is a national home warranty or guarantee scheme to ensure protection, even if the builder is no longer in business.
Home warranty is a complex issue, and one the insurance industry and Government is understandably wary of.
There are proponents of compulsory home warranty insurance. I think this should be a matter of consumer choice, but every builder should have the ability to offer it to their clients.
Australia has a mandatory home warranty scheme, but it can have some unintended consequences.
I remember holidaying in Melbourne about a decade ago when the biggest Australian home warranty provider HIH Ltd collapsed.
The local papers were full of stories of multiple stopped jobs, and the entire home building industry being paralysed with no work for three months, and with no end in sight. It was terrifying reading!
Ultimately, our Government will decide which scheme we end up with in New Zealand, but it’s clear that the Guarantee offered by Registered Master Builders is valued, proven and effective in looking after our clients’ interests.