The Master Builders Fidelity Fund was set up as one part of a major package of reforms for the residential builder sector introduced by the Northern Territory Government at the beginning of 2013. It is designed to provide certainty to new home owners that their projects will be completed and to build trust and confidence in the building industry.
The package, which includes amendments to the Building Act:
- ensures builders have the capacity and experience to build your home
- introduces Fidelity Fund Certificates for all new homes and extensions that provide
- cover of up to $200,000 if your builder goes bankrupt, dies, loses registration or disappears
- cover for structural defects for six years and non-structural defects for one year
- limits deposits to 5%
- stipulates that progress payments are made only on completion of work
- provides a dispute resolution process through Consumer Affairs
- requires builders to maintain assets of $50,000 at all times.
The Master Builders Fidelity Fund is a not-for-profit trust that administers the fund.
Anyone thinking of engaging a residential builder should familiarise themselves with the strengths and limitations of the Fidelity Fund, which are outlined on this website.
When in doubt about a builder or your contract, please check with the Fidelity Fund, the Northern Territory Government’s Building Advisory Services or Consumer Affairs.
FAQsFrequently asked questions by owners and builders