For Homeowners

Fidelity Fund protects homeowners through a package of measures that includes tighter controls, annually updated builders’ cover, and compulsory Fidelity Fund NT Certificates.

Fidelity Fund NT was introduced in response to a number of builders going bankrupt in the Northern Territory, leaving families with uncompleted houses and little chance of getting their money back.

Every time a builder goes bankrupt, there is an enormous ripple effect on consumers and tradespeople who are caught up in the mess. It undoubtedly leaves a dent in people’s confidence in the building industry. Our certificates, assessment of builders capacity and capability, and compliance audits act as important preventative measures, as well as ensuring work gets completed.



Read more about how it works.

When You Can Lodge a Claim



Fidelity Fund NT Certificates protect homeowners against financial loss from defective work or non-completion only when a builder has:

  • died
  • disappeared
  • become insolvent or
  • had their registration suspended or cancelled.

 

These are called ‘Trigger Events’.


Builder declares bankruptcy

 

At this point, the builder has broken their contract and you can make contact with Fidelity Fund NT. Each circumstance is different, but homeowners can apply to access the rights covered in their certificate.



How Much You Can Claim



As a homeowner, you may benefit from up to $200,000 toward completing or remedying your home if it is:

  • incomplete (a non-completion event) or
  • deemed defective during the period of the consumer guarantees.

 

This cover is capped at 20% of the contract price. If you are claiming for both defective work and non-completion, the cap is still $200,000.

A Fidelity Fund NT Certificate covers non-structural defects for up to a year, and structural defects for up to six years.


Cost


As with all insurance policies, Fidelity Fund NT does charge a fee for its services. However, our fund is not-for-profit and these fees help us to administer and deliver our services, as well as pay out claims.

The cost of the scheme is calculated based on the contract value of the new home, unit, or extensions. For example, for a building contract between $350,000 and $399,999, the cost of the certificate is $3,587.00

Contact us to request the current schedule of rates.
  • Where does this money go?

    Unlike insurance cover, Fidelity Fund NT is an industry run, not-for-profit trust administered by a Board of experienced trustees. That means, all fees paid go into a pool of money that accumulates over time and is available for when claims are made.

    Fees also cover Fidelity Fund NT’s administrative costs, which include:

    ● accountants checking the financials of all builders seeking registration

    ● actuaries managing the fund

    ● consumer education

    ● engaging a compliance auditor to:

         ○ keep an eye on projects

         ○ make spot checks to ensure work is
     performed in a timely manner.


Lodge a Claim


To lodge a claim, contact Fidelity Fund NT on 08 8922 9680 or info@fidelityfundnt.com.au

Your Responsibilities


Fidelity Fund NT is what is known as a scheme of ‘last resort’, which means your builder has to die, be declared bankrupt, disappear or be deregistered before you can lodge a claim.

As a consumer, you are still responsible for:

  • getting competitive quotes
  • taking care when selecting your builder
  • not providing more than a 5% deposit
  • not making progress payments unless work has been completed satisfactorily.

Twenty percent of the contract cost is normally sufficient to cover any losses if you don't make progress payments until work is completed.


  • Progress payments

    Current building regulations set the following progress payments at a maximum of:

    • 5% deposit
    • 10% base stage
    • 20% frame stage
    • 25% enclosed/lock up stage
    • 30% fixing stage
    • 7% practical completion
    • 3% final payment after issue of occupancy permit or builder’s declaration.

Builders can only request payment through an invoice after making a declaration that the stage has been completed. For more information on NT residential building regulations, go to the NT Government website.


Dispute Mediation


The Building Regulations also include provisions for Northern Territory Consumer Affairs to mediate, should disputes arise between builders and homeowners while the builder is still in business.

 For more information, visit their complaints and disputes page.


  • Commissioner for Consumer Affairs

    If your dispute does not meet the criteria to make a claim with Fidelity Fund NT read When You Can Lodge a Claim, you must resolve disputes before the Commissioner of Residential Building Disputes, or other dispute resolution procedures.


    For more information on residential building insurance, go to the NT Government website. 


  • Fraud & criminal behaviour

    Fidelity Fund NT does not protect you against criminal behaviour – insurance does. If you are worried about a builder’s behaviour, seek advice from NT Consumer Affairs. 


    The NT scheme contains several checks and balances that can mitigate the risk of fraud, such as: 


    • builders having to be registered
    • random inspections by a compliance auditor
    • limits on progress payments.

    With the above checks in place, fraudulent behaviour is more likely to be noticed, such as a builder:


    • using another builder’s licence,
    • asking for early progress payments or
    • encouraging owners to become owner-builders.

Defect Definitions


Structural defects are substantial items such as:

  • roof structures
  • wall structures
  • waterproofing
  • concrete slabs.


Defect Definitions

Non-structural defects are fittings, such as:

  • kitchen cupboards,
  • flooring
  • taps
  • doors.