Wondering about build guarantees? Here’s what you need to know

Written By Sam Ludbrook

If you’re building a new home, there’s already a lot on your mind - choosing the right section, making design decisions, sorting finance, and finding the right builder. But one thing that often gets overlooked (and really shouldn’t) is your build guarantee.

A build guarantee might not be the flashiest part of the process, but it’s your safety net if things go off track. It can protect you financially from loss, delays, unfinished work, or major structural defects. It also adds peace of mind for future buyers - so it’s worth getting right.

So, What Is a Build Guarantee?

It’s basically your safety net. If your builder goes under mid-job, leaves work unfinished, or something major crops up after handover, a build guarantee can help cover the costs and give you some peace of mind.

Who Are the Main Build Guarantee Providers in NZ?

There are a few main options, and it’s good to know who they are:

  • Master Build Guarantee – via the Registered Master Builders Association. This is the most widely used and generally accepted by all major banks.

  • Halo 10-Year Guarantee – available through NZ Certified Builders (NZCB). It’s another strong option, covering structural issues and defects.

  • Other options – independent builders may offer insurance-backed guarantees through providers like Stamford Insurance. These are not association-backed but offer similar levels of protection.

What’s Typically Covered:

  • Loss of deposit if the builder fails to start

  • Non-completion of the build

  • Defects (usually for 12–24 months)

  • Structural issues (covered for up to 10 years and often transferable

What’s Usually Not Covered:

  • Wear and tear or cosmetic issues

  • Work you’ve done yourself or materials you supply

  • Landscaping, pools, fences, or sheds (unless specifically included)

  • Problems caused by tenants, subcontractors, or unapproved changes

  • Builder insolvency if the guarantee wasn’t submitted before work began

A Recent Heads-Up from Consumer NZ

Consumer NZ recently uncovered that 27 homeowners were left unprotected when their Master Build Guarantee applications failed. Why? The builders simply didn’t submit the applications in time. Even though the homeowners filled out their forms, the guarantees were never activated. The takeaway? Don’t assume your builder has it sorted - double check.

Timing Is Everything

Here’s what generally needs to happen to make sure your guarantee is valid:

  • The builder must lodge the guarantee before work starts

  • You must sign and return the paperwork before the build begins

  • Make sure the names on the guarantee match your loan or trust setup
    Your builder must be a current member of the relevant association (Master Builders or NZCB)

What Should You Do?

  • Ask your builder for a copy of the guarantee certificate once it’s been issued

  • Make sure your builder is registered with the guarantee provider (e.g. Master Build or NZCB)

  • Confirm that the guarantee covers insolvency - and that it was submitted before building started

  • Read the fine print so you know exactly what’s covered, what’s not, and for how long

Final Word

A build guarantee isn’t just another piece of paperwork - it’s real protection for one of the biggest investments you’ll ever make. Whether you’re going with Master Build, Halo, Stamford, or another provider, the key is getting it sorted early and knowing exactly what’s covered (and what’s not).

At Colab, we collaborate with your builder, lender, solicitor, and you to help your build go as smoothly as possible.

Thinking of building? 

Download our free guide to new builds here for practical tips, finance insights, and everything you need to know before getting started.

Sam Ludbrook
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