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All You Need to Know About MasterBuild Guarantees

Updated: Sep 6, 2023


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Congratulations! You’re about to embark on the adventure of your life – building a home! Or perhaps you’re renovating your kitchen or adding an extension. Either way, you’re in for an exciting ride .. lots of decisions to be made ranging from paint colours to tapware. Along with all the fun of planning and seeing your dream take shape before your very own eyes, it’s wise to be prepared for any contingencies.

This is where a Master Builder’s Guarantee comes into play. It's there to protect a homeowner when building or renovating their home. The Guarantee covers the homeowner for 10 years and starts on the date that it is signed.


Not only are you covered for all work undertaken during the build or renovation process, but also after the build is completed, up to 10 years from the signed date.

The Materials and Workmanship cover included in the Guarantee protects you if there’s an issue with the expected standard of work carried out by the builder or the materials used on the project. Please bear in mind that if the materials come with their own manufacturer or supplier warranty, if anything goes wrong, you would need to claim under that warranty first.

The Loss of Deposit cover gives you protection if your builder is unable to complete the build and you lose your deposit.

The Non-Completion cover protects you if your builder is unable to complete the project and you need to pay for more than what was originally quoted to you, to get the work finished. It’s also good to remember that you’re covered for any remedial work that must be done on the work carried out by your builder so far.

If you’re confident of and know your builder really well, you may wish to opt out of the Loss of Deposit and Non-Completion covers.


The Guarantee usually costs less than 1% of the build and adds value to your property.

Here’s the cost breakdown:

Table showing the breakdown of costs.

Helpful Tip: the Guarantee is fully transferable to the new owner if you sell your property.


Anyone who is building a new home or undertaking a renovation costing at least $30,000 can apply for this.

It is your builder’s responsibility to offer you the 10-year Guarantee. Once all the information on the application form has been completed by you and your builder, they will submit it to Master Builders. Please note that the cover is not valid until both you and your builder have received confirmation from Master Build Services that your application has been accepted.


Although the Guarantee provides extensive cover for your project, there are things not covered, such as the following:

  • Anything that is not the builder’s responsibility (ie work, services, materials that are not covered in the Contract and also things that were arranged and paid for by you, personally).

  • You, if you are the owner and builder of the project.

  • Consequential damage to your home.

  • Items that are not part of, or directly connected to your home such as swimming pools, driveways, paths, lawns, etc.

  • Any buildings that have been moved from their permanent location.

  • Labour-only contractors (this is where your builder is managing the site but does not provide the materials or labour, or where the people working on site are not your builders’ sub-contractors or employees).

  • Claims for Loss of Deposit or Non-Completion if you have chosen to opt out of these in your Guarantee application.

We hope this has been helpful but if you have more questions or wish to know more about MasterBuild Guarantees, please see their FAQ page here.

If you live in the Wellington region and would like to discuss your new build or renovation project, please get in touch with the team at Orkney Group.

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