Bonded NZ Releases Protect Project to Mitigate Contractor Defaults

In a strong start to the new year, Bonded NZ is proud to release yet another service that will help homeowners secure their construction projects – Protect Project.

With the rising uncertainties and building costs, homeowners are facing significant risks to any home renovations. New Zealand’s construction industry is moving at a slow rate, and many homeowners have put their renovation plans on hold as they adopt a wait-and-see approach.

Those who are renovating their homes face serious project risks from factors beyond their control, such as contractor defaults. Many Kiwi homeowners are already battling high mortgage repayments, and should be offered security in the event they need to modify their homes.

Enter Protect Project, a new offering by Bonded NZ that helps homeowners navigate renovations with better peace of mind.

What is Protect Project?

Protect Project is a new insurance package that offers homeowners protection against contractor defaults. Homeowners who apply for this cover will be secured with ‘Job Completion Guarantee,’ which ensures that if a contractor cannot complete the job for any reason, the homeowner’s deposit will be secured, and the project work will be completed. The guarantee covers 10% of the contract value, up to a maximum of $100,000.

Additionally, Protect Project package also comes with personal claims support. This comprehensive support allows homeowners to navigate any contractor defaults with the full support of the Bonded team, including the entire management of the claims process, from application to project recommencement.

We understand that finding another contractor in the market can be a challenge, which is why Protect Project includes a ‘Contractor Replacement’ service. In the event that a homeowner’s existing contractor is unable to complete the job, the team at Bonded NZ will find a suitable, reliable replacement.

Protect Project covers any homeowner or investor engaging contractors for a project in:

House construction and renovation
Supply of tiny or modular homes
Civil works and site preparation
Landscaping
Swimming pool construction

To apply, homeowners will be required to produce the following information:

Financial details from both the contractor and the owners.
Documentation showcasing the contractor's experience with similar work.
Contract documents for the project being completed.

Case study: How Protect Project helps

Here’s a case scenario in which Protect Project can streamline the process in the event of a renovation delay.

Scenario

Mike and Jane live in Tauranga with their two young kids and have a lot of friends and family. Wanting to create a fun space for everyone, they decide to build a swimming pool in their large backyard. They secure a $250k quote from a local pool specialist, including landscaping and decking, and the project is set to take 3 months.

However, 6 weeks into the job, three key team members from the pool company left. The company then informs Mike and Jane that the project will take at least nine more months to finish.

Result

Thanks to Project Protect NZ, Mike and Jane receive a $25,000 cash payment immediately to help them find a new pool company and cover any extra costs. The BondedNZ team also managed the claims process from start to end, ensuring a hassle-free experience for Mike and Jane.

Ease of mind in home renovations

Renovating or refurbishing a home is an exciting time in a homeowner’s journey. With Protect Project, homeowners can reduce the stress of project delays and increase the value of their homes with streamlined renovation projects.

For more information about Protect Project and to browse frequently asked questions, visit our website. Alternatively, feel free to get in touch with us at tp@bonded.co.nz or call 09 524 2100.