Builders who are required to participate in the MBP, as a condition of obtaining Eligibility for home warranty insurance, must engage a MBP service provider when undertaking projects with a contract price of $50,000 or more.
The MBP service provider is required to complete a ‘MBP Certification' form confirming that the participating builder has successfully completed the components of the MBP.
There are two certification forms, the first form covering components 1 - 3 of the program which (if appropriate) is completed by the MBP service provider and forwarded to the builder's intermediary (broker) for submission with the home warranty insurance Project Application form (i.e. the application to the Insurance Agent for a Certificate of Insurance for the project).
The second form covering component 4 of the program is completed (if appropriate) by the MBP service provider on completion of the project and forwarded to the intermediary and Insurance Agent.
The components of the MBP, which ABSHOW is required to certify, are as outlined below.
Component 1 - Contract Administration Component
- Review contract documentation
- The parties and site address etc are identified.
- The correct name and licence details of the builder.
- The building contract terms do not put the builder at risk of financial loss or unfair terms.
- The scheduled payments relate directly to the progress of work carried out.
- Review the construction schedule / programme to ensure that it is realistic.
- Certify that the requirements of Component 1 have been undertaken and found to be satisfactory.
Component 2 - Reasonableness of Cost Component
- Ensure that the builder's quotation is reasonable for the project requirements, type, size and value.
- Certify that the requirements of Component 2 have been undertaken and found to be satisfactory.
Component 3 - Quality Assurance / Building Inspection Component (Part 1)
- Determine the number of inspections required to be undertaken, in order to ensure that:
- The quality of the residential work is of acceptable standards; and
- The works comply with the provisions of the building contract.
- Certify that the requirements of Component 3 have been undertaken and found to be satisfactory.
Component 4 - Quality Assurance / Building Inspection Component (Part 2)
- Monitor progress of construction period and identify delays.
- Check that contract variations are in writing, properly costed.
- Undertake inspections as determined under Component 3.
- Complete an inspection Report and certify.
- Immediately report to SICorp any instances of concerns as to the builder's capacity to complete existing projects and / or to take on new work.
- Complete a Final Report on the project.
If you require further information for your Managed Builder Program needs, please call our office on (02) 8713 1800