NHBC legal obligations?

[NewHomeExpert]

I realise this, but I doubt many home owners would recognise the NHBC warranty as an financial or insurance product for that matter.

The common misconception (wrongly) is that it is a "Guarantee" .

[m fuerst]

I work for a company which developed a block of flats with NHBC cover and a NHBC builder. The builder went bust after completion and we could not sell the flats due to the state of the market. We accepted the Buildmark cover as owner and have tried to make a claim because the roof of the building is leaking in several places. They don't want to talk to us because we were the Registered Developer. But it was the builder who messed up ! Why shouldn't we be able to resort to the insurance we paid for ??

[NewHomeExpert]

The NHBC are quite right.

Put it like this, would the NHBC pay a builder for work a sub contractor who worked for them did if he went bust?

You should have registered the development in using the builder's NHBC registration, not your own.

I think the reason you used your registration may have been that the Buildmark cover would have been much higher using the builder's registration.
You tried to save a few ££££s and it has back-fired.

[m fuerst]

"Put it like this, would the NHBC pay a builder for work a sub contractor who worked for them did if he went bust?"

The builder is out of the picture after 2 years anyway and it is more than 3 years since the building was completed. This is insurance and we paid NHBC handsomely for it and relied on their inspector to help make sure the building was built right ! There is a big difference between the relationship between and Contractor and sub contractor and a builder and developer. The sub contractor who botched up the roof has not contractual obligation to us, only to the builder who employed him who is no longer there.

"You should have registered the development in using the builder's NHBC registration, not your own."

I was advised that this was not an option at the time. This is a quote off of NHBC website "Only Builders and Developers who are on the NHBC Register can sell homes with the NHBC Buildmark range of cover." We owned the land and employed the builder and other proffessionals. Due to the downturn in the market we could not sell the flats so we let them and registered the buildmark warranties for each flat in our own name as instructed by NHBC.

If you work for an automobile company, even on the assembly line or head office, does that mean you are not entitled to a warranty on a car from that company ?? We are just property investors, we did not have anything to do with the technical side of things. We employed a "competent" builder who had NHBC status and were actually considered to be outstanding by NHBC themselves having won several awardds for other projects they had built.

"I think the reason you used your registration may have been that the Buildmark cover would have been much higher using the builder's registration.
You tried to save a few ££££s and it has back-fired.[/QUOTE]"

Sounds a bit like you have an axe to grind. We only registered for this project and the work is under both of our registrations as a registered developer must use a registered builder. I am not sure how a developer could use NHBC to build a block of flats without becoming registered. We also had to stay registered for the first two years with annual dues of £1,500 just so we could have the benefit of passing the buildmark cover on to potential purchasers.

[NewHomeExpert]

No one forced you to use the NHBC as a new home warranty provider.
This was your choice.

You made an error in not using your builder to register the new homes for Buildmark cover.
If you had done so the NHBC would pick up the tab for any defects after your builder ceased trading.

You clearly do not know much about building development.
You should not rely on just the NHBC stage inspections to "make sure the building was built right"
Professional developers who actually do know what they are doing, do get involved with the "technical side" as you put it. They also employ professionals such as Clerk of Works or Project Managers to oversee every aspect of the project.

Finally after two years, the NHBC warranty only covers structural defects. A leaking roof would be classed as a maintenance issue, if as you say it is three years since the building was completed.

You are an investor, your investment has gone south and you are looking for someone to blame.
The NHBC is right.

[m fuerst]

"No one forced you to use the NHBC as a new home warranty provider.
This was your choice." It's suicide to build today without NHBC as homeowners can't get mortgages without it.

"You made an error in not using your builder to register the new homes for Buildmark cover." This is what I was advised to do by the NHBC reps who I talked to at the time. I was told this was our only option and it was not a cost savings as you suggest.
"If you had done so the NHBC would pick up the tab for any defects after your builder ceased trading." From what I have seen elsewhere on this blog I am not convinced of that

"You clearly do not know much about building development." Everyone has to start somewhere
"You should not rely on just the NHBC stage inspections to "make sure the building was built right"
Professional developers who actually do know what they are doing, do get involved with the "technical side" as you put it. They also employ professionals such as Clerk of Works or Project Managers to oversee every aspect of the project." You assume a lot ! We did have a professional PM, EA as well as a QS and the project was monitored by Architects ( AEW who design all of the McDonalds in the country as well as other projects ) as well as structural and m&e engineers. Since then we have gone on to build 3 small shopping strips for blue chip tenants as well as a 115 Bed Travelodge.

"Finally after two years, the NHBC warranty only covers structural defects. A leaking roof would be classed as a maintenance issue, if as you say it is three years since the building was completed." The roof is a "shed" type commercial roof with a sanofil membrane and one would like to think should have more than a 2 year warranty

"You are an investor, your investment has gone south and you are looking for someone to blame." My investment is fully let and tenants are paying good rent for it. However, We paid the premiums for a buildmark warranty to benefit the occupants of the flats. Now that we happen to be the legal occupants why should we not benefit from the cover ? Simples

"The NHBC is right.

" You clearly don't like developers do you.

[NewHomeExpert]

" You clearly don't like developers do you.

It is not a question of who I like or don't like.
You are wrong to blame the NHBC for mistakes you have made through your own naivety and inexperience.
Sarah Beeney, lovely as she is, has a lot to answer for!

[Silver]

There are many other warranty providers to the housebuilding fraternity, smaller more customer focused with more inspections provided during the build with more technical advice given to the builder(s) to put things right in each of the build stages. Unfortunately, the NHBC have become too complacent and too big to care!!!!

[NewHomeExpert]

Silver, with respect you don't know what you are talking about!

The NHBC are a big warranty provider and have been around for 75 years.

Many other smaller warranty companies like Zurich for example, have come and gone, unable to provide either the service to builders and house buyers or even break even as a business.

I would want to know that my new home warranty provider had a long history and would not cease to be before the warranty expired.

If a house builder is not giving an NHBC warranty, it should serve as a warning to anyone buying a home from them.

[Silver]

Written by a true NHBC Public Relations Employee!!!!