Completion Certificates and Waiver of Subrogation

FROM NZCB — Gabby Surtees Administration & Customer Liaison Halo Guarantees Limited

Building a home can be challenging. To ensure you get the most out of your Halo Guarantee, Halo Guarantees Limited outlines the importance of the Completion Certificate and the features of the Waiver of Subrogation.

Completion Certification

When the contracted work has finished, the homeowner must complete the Halo Completion Certificate, which is the final step in the process. It’s important because it captures the final Contract Price, including any variations and what determines the final sum covered by your Halo 10-Year Residential Guarantee. It also records the date the Build reached Practical Completion/Date of Possession (whichever is earlier), which triggers the beginning of the 10-Year Defect Guarantee Period as well as the Builder’s Waiver of Subrogation Cover (commencing two years later). If the Completion Certificate is not returned, the Halo 10-Year Residential Guarantee will either automatically start 120 days after the expected completion date supplied or a date determined by Halo Guarantees Limited with the original Contract Price supplied.

Waiver of Subrogation 10 YEAR RESIDENTIAL GUARANTEE

GUARANTEE NUMBER Waiver of Subrogation

The Halo Guarantee provides unique protection for the Builder under the Waiver of Subrogation (previously called Sleep Easy Cover), which commences two years after the Practical Completion Date of the Build. This means Halo Guarantees Limited will step in to assist with any claims made against the Builder. To benefit from this, the Builder must have a current New Zealand Certified Builders (NZCB) membership at the time a claim is made.

It is important to note, the Builder’s Waiver of Subrogation will not trigger if: – the Homeowner does not lodge a valid claim, therefore it cannot be seen as a method of NZCB builders avoiding meeting their liabilities to fix defects under the Building Act. – the Builder does not have genuine grounds to contest the claim – in other words NZCB builders should be prepared to accept that if they are clearly in the wrong, the Waiver of Subrogation does not apply. – the Builder has failed to comply with any final and binding ruling against the Builder in respect of the claim, which has been issued by a Court, Arbitrator or similar.

Legal Name of Builder

Name of Owner(s)

BUILDING SITE

Site Details Lot No. DP No. CT No.

Site Address

To the Builder named above: 1. Subject to the provisions in 2 and 3 below, Halo Guarantees Limited agrees to waive all rights of subrogation, which it may have or acquire against the Builder arising out of any claim(s) accepted under the Guarantee identified above (“the Guarantee”) which are discovered and notified to Halo Guarantees Limited during the period commencing on the second anniversary of the Practical Completion Date specified in the Guarantee and finishing at the end of the Period of Cover under the Guarantee (“the Waiver Period”). 2. For the purposes of this waiver, and of Part 2 Subpart 1 of the Contract and Commercial Law Act 2017, the expression

“Builder”: a.

b. c. Means the Individual or Business Member of the New Zealand Certified Builders Association Inc. who was engaged to carry out the relevant building work, and includes All employees and contractors in the nature of employees of the Builder, and (if the Builder is a partnership or similar unincorporated group of people) all the partners or members of the group, and

3. d. (if the Builder is a company or similar incorporated entity) all the shareholders of, directors of, and people who effectively manage or control the Builder, but e. does not include any independent supplier to or subcontractor of the Builder. This waiver does not apply and cannot be enforced against Halo Guarantees Limited in circumstances where, in the reasonable opinion of Halo Guarantees Ltd: a. the Builder does not have genuine grounds on which to contest the claim(s) accepted under the Guarantee (irrespective of whether those grounds are ultimately proven); b. the Builder has failed to comply with a final and binding ruling against the Builder in respect of the claim(s) accepted under the Guarantee, which ruling has been issued by a Court, Tribunal, Arbitrator, Adjudicator or Referee of competent jurisdiction: or c. the Builder is not a Member of the New Zealand Certified Builders Association Inc. (in any category) at the time the relevant claim(s) is/are discovered and notified to Halo Guarantees Limited.

SIGNED FOR AND ON BEHALF OF HALO GUARANTEES LTD

Date For more information, please contact the Halo Guarantees Limited team on 0800 141 490 or applications@halo.nz

SIGNATURE

NAME / TITLE. Grant Florence, Halo Guarantees Ltd, Director

Halo Guarantees Limited, PO Box 13415, Tauranga Central, Tauranga 3141, Ph 0800 141 490 Version 20201001 HGL05

Your Halo 10-Year Residential Guarantee is administered by Halo Guarantees Limited, a company owned 100% by New Zealand Certified Builders Association. All Halo Guarantee documentation can be found on the NZCB members’ only Toolshed. If you have any questions please contact Gabby on 0800 141 490 or applications@halo.co.nz