1 00:00:00,320 --> 00:00:02,600 Speaker 1: Afternoon. The government has filled in the missing pieces of 2 00:00:02,640 --> 00:00:05,800 Speaker 1: its Building and Construction reform. The outstanding question has been 3 00:00:05,880 --> 00:00:08,920 Speaker 1: who would pay for defective work if the trade can't 4 00:00:08,960 --> 00:00:11,639 Speaker 1: cover it. The answer is the homeowner. The homeowner will 5 00:00:11,680 --> 00:00:13,240 Speaker 1: have to take out a warranty to cover the work. 6 00:00:13,320 --> 00:00:15,520 Speaker 1: Chris Pink is the Building in Construction min a stand. 7 00:00:15,320 --> 00:00:17,640 Speaker 2: With us now, Hi Chris, Hello Heather. 8 00:00:17,760 --> 00:00:19,320 Speaker 1: How much one of these warranties cost? 9 00:00:20,520 --> 00:00:24,240 Speaker 2: Well, actually, mostly people have warranties or guarantees in place 10 00:00:24,320 --> 00:00:26,960 Speaker 2: already now, so in those cases actually nothing at all. 11 00:00:27,640 --> 00:00:32,040 Speaker 2: But roughly speaking, it's around half of one percent of 12 00:00:32,080 --> 00:00:34,159 Speaker 2: the cost of a build. So we think that's a 13 00:00:34,159 --> 00:00:36,400 Speaker 2: lot of peace of mind and it's a good trade 14 00:00:36,400 --> 00:00:38,559 Speaker 2: off for the council not having to be involved in 15 00:00:38,640 --> 00:00:40,440 Speaker 2: rate payers being on the hop to the extent they 16 00:00:40,479 --> 00:00:40,880 Speaker 2: are now. 17 00:00:41,159 --> 00:00:43,320 Speaker 1: So if you're doing a million a million dollar bild, 18 00:00:43,320 --> 00:00:47,000 Speaker 1: you're looking at about five thousand dollars exactly. Okay, how 19 00:00:47,000 --> 00:00:48,519 Speaker 1: would you have it if you already have it? 20 00:00:50,240 --> 00:00:53,800 Speaker 2: Oh, because these products are already available, So think certified 21 00:00:53,840 --> 00:00:56,880 Speaker 2: builders have a guarantee called Halo. Register Master builders have 22 00:00:56,920 --> 00:00:59,960 Speaker 2: their own one, and there's an insurance outfit called Stamp 23 00:01:00,280 --> 00:01:02,040 Speaker 2: that provides building defect insurance. 24 00:01:02,080 --> 00:01:04,679 Speaker 1: So if you're using one of those builders, they're already 25 00:01:04,680 --> 00:01:05,200 Speaker 1: covered by it. 26 00:01:06,160 --> 00:01:08,120 Speaker 2: Yeah, that's right, And to be honest, most of the 27 00:01:08,160 --> 00:01:10,759 Speaker 2: reputible ones are. And if there's some builders who aren't 28 00:01:10,760 --> 00:01:13,360 Speaker 2: able to satisfy the insurers or the guarantee providers that 29 00:01:13,360 --> 00:01:15,800 Speaker 2: they're good enough quality that they want to stand behind them, 30 00:01:15,880 --> 00:01:17,640 Speaker 2: then maybe you don't want them doing your work anyway. 31 00:01:17,760 --> 00:01:21,479 Speaker 1: How far can that, let's take master builders, how far 32 00:01:21,480 --> 00:01:23,560 Speaker 1: can that warranty go, because let's say that there was 33 00:01:23,560 --> 00:01:26,480 Speaker 1: something as massive as the leaky building situation all over again, 34 00:01:26,520 --> 00:01:28,319 Speaker 1: would they be able to cover all of that? 35 00:01:29,520 --> 00:01:32,560 Speaker 2: Yeah, well, basically they will have to register with MB 36 00:01:32,760 --> 00:01:35,600 Speaker 2: to make sure that we've got visibility that they would 37 00:01:35,640 --> 00:01:37,800 Speaker 2: have the resources and the event of a large scale 38 00:01:38,200 --> 00:01:40,520 Speaker 2: defict kind of claim. So, as you say, that's an 39 00:01:40,520 --> 00:01:43,399 Speaker 2: important consideration. But we're working through that detail now, but 40 00:01:43,600 --> 00:01:46,080 Speaker 2: we're really confident from the week that we've done with 41 00:01:46,120 --> 00:01:47,800 Speaker 2: them already that they will be able to get there 42 00:01:47,840 --> 00:01:49,240 Speaker 2: and provide that assurance hold. 43 00:01:49,320 --> 00:01:50,840 Speaker 1: And so why would they have to register with the MB? 44 00:01:51,320 --> 00:01:52,800 Speaker 1: Would the government be the backstop here? 45 00:01:53,840 --> 00:01:55,760 Speaker 2: No, the government's not the backstop, but the government is 46 00:01:55,800 --> 00:01:59,680 Speaker 2: saying we require work north of one hundred thousand dollars 47 00:01:59,720 --> 00:02:03,440 Speaker 2: based to have one of the approved guarantees or warranty 48 00:02:03,640 --> 00:02:06,680 Speaker 2: or insurance systems and saying, well, you know, we need 49 00:02:06,680 --> 00:02:09,280 Speaker 2: those to be robust because they need to be available 50 00:02:09,520 --> 00:02:11,520 Speaker 2: when the proverbial hits the fan? 51 00:02:11,639 --> 00:02:13,520 Speaker 1: Does master builders run out at a million dollars? 52 00:02:13,560 --> 00:02:13,640 Speaker 2: Like? 53 00:02:14,120 --> 00:02:15,960 Speaker 1: Is that the cap on the warranty? 54 00:02:16,600 --> 00:02:19,040 Speaker 2: I shouldn't speak for what the details of the scheme are, 55 00:02:19,040 --> 00:02:20,880 Speaker 2: but I know that they in certified builders have both 56 00:02:20,880 --> 00:02:24,280 Speaker 2: been working really proactively and constructively with en BETA to 57 00:02:24,320 --> 00:02:26,440 Speaker 2: work out the details. And some of it's the devil 58 00:02:26,440 --> 00:02:28,280 Speaker 2: in the detail about when you can claim and who 59 00:02:28,280 --> 00:02:30,760 Speaker 2: can claim, you know, how much experience they will want 60 00:02:30,800 --> 00:02:32,560 Speaker 2: the builders to hap and so forth. So we're going 61 00:02:32,600 --> 00:02:33,960 Speaker 2: through that detail now. 62 00:02:34,200 --> 00:02:36,480 Speaker 1: Is you are you putting the onus on the homeowner 63 00:02:37,000 --> 00:02:39,200 Speaker 1: because builders cannot get insurance? 64 00:02:40,400 --> 00:02:42,560 Speaker 2: No, it's the builders who would get the insurance or 65 00:02:42,600 --> 00:02:45,960 Speaker 2: the cover, but they would have it, you know, effectively, 66 00:02:46,000 --> 00:02:48,000 Speaker 2: they would pass that cost on to the homeowner. So 67 00:02:48,240 --> 00:02:50,160 Speaker 2: the point is that it won't be the rate payers 68 00:02:50,280 --> 00:02:54,080 Speaker 2: in general who are subsidizing poor building practices. It's actually 69 00:02:54,120 --> 00:02:56,720 Speaker 2: the homeowner who would you know, effectively, pay a bit more, 70 00:02:56,800 --> 00:02:59,359 Speaker 2: but have that peace of mind and take the councils 71 00:02:59,360 --> 00:03:01,400 Speaker 2: out of the equation, or at least not to the 72 00:03:01,440 --> 00:03:02,280 Speaker 2: full extent that they. 73 00:03:02,200 --> 00:03:04,160 Speaker 1: Are now Okay, Chris, I appreciate your time. Chris Pink, 74 00:03:04,200 --> 00:03:05,520 Speaker 1: Building and Construction Minister. 75 00:03:06,440 --> 00:03:09,600 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 76 00:03:09,680 --> 00:03:12,720 Speaker 2: news talks. 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