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Speaker 1: Compulsory building warranties. Government's moving on this. They say they

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Speaker 1: want to protect us from cowboys. So renovation work costing

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Speaker 1: more than one hundred thousand dollars, you'll need a compulsory warranty,

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Speaker 1: Thank you very much. All new houses under four stories

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Speaker 1: you'll need a compulsory warranty, Thank you very much. Malcolm

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Speaker 1: Fleming is New Zealand Certified Builders CEO joining us now. Hey, Malcolm, good.

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Speaker 2: Morning, Ryan, good move, Yes, very positive move. This has

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Speaker 2: been some industry has been caring or for as long

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Speaker 2: as I've been in these sort of roles, and that's

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Speaker 2: over a decade.

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Speaker 1: How many properties are being built right now that don't

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Speaker 1: have warranties?

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Speaker 2: I look at the membership in his own Certified Builders.

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Speaker 2: Even though one hundred percent of our twenty three hundred

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Speaker 2: members can offer a guarantee, only about forty two percent

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Speaker 2: of our building contracts have a guarantee attached to them.

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Speaker 2: So that's sort of magnitude.

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Speaker 1: How much extra will it cost to add that to

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Speaker 1: the contract?

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Speaker 2: What depends on the size of the project. At the

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Speaker 2: very low level of two undred thousand dollars, it's about

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Speaker 2: zero point fourty percent. One just sort of get into

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Speaker 2: sort of closer millions, like zero point one three percent.

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Speaker 1: What does it cover?

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Speaker 2: It covers defects for a year and also structural structure

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Speaker 2: for ten years, so it's a ten year quite comprehensive guarantee.

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Speaker 1: What are defects?

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Speaker 2: Defects are those sort of issues that need to be

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Speaker 2: sort of tidied up close to the completion of the

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Speaker 2: build well structure are more deep bedded ones, for example,

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Speaker 2: water ingress, all of the bees movement in the actual

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Speaker 2: structure itself.

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Speaker 1: Why haven't you say only forty percent of certified builders

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Speaker 1: actually put this into their contracts. Now, why wouldn't they

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Speaker 1: the rest of them put them in do you think?

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Speaker 1: Is it just because they want to be as competitive

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Speaker 1: on cost as they can be.

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Speaker 2: So, just to be really clear, this is a product

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Speaker 2: that a homeowner pays for they're a builder, so there

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Speaker 2: isn't that it's not going on to all the contracts.

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Speaker 2: Is that either the builder is not offering it to homeowner,

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Speaker 2: so that's certainly part of it, or it is offered

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Speaker 2: to homeown the homeowner saying no, I won't pay that

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Speaker 2: additional thousand dollars or whatever it might be, depending on

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Speaker 2: the cost of the project. I'm going to spend that

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Speaker 2: somewhere else.

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Speaker 1: So your advice would be, if it's not offered to you,

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Speaker 1: ask for it.

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Speaker 2: Very much so the moment and what was announced yesterday

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Speaker 2: that once the regulation is in place and there's a

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Speaker 2: timeline of that which looking probably abound twenty twenty seven

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Speaker 2: for us to be in place, that'll be mandatory for

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Speaker 2: a homeowner for the side type of projects we talked

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Speaker 2: about earlier, to have a home warranty product of some

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Speaker 2: type in place.

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Speaker 1: And until then ask for it. That's the advice. Appreciate

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Speaker 1: your time this morning, Malcolm. Thank you Malcolm Fleming, and

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Speaker 1: you said on Certified Build as CEO.

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Speaker 2: For more from early edition with Ryan Bridge. Listen live

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