Protek structural warranty quotation

[Amateur bob]

Good afternoon everyone i am planning a house build in central scotland, due to start next month and i have recieved a quote from protek for the 10 year structural warranty, i will paste this below, is this reasonable? one thing ive notived is that it doesnt include stage certificates, will this mean that future buyers of the house wont be able to get a mortgage or should this 10 year warranty be sufficient without this element? thanks

 

Period: 10 Years
Premium (inc IPT (12%)): £1,172.10
Technical Audit and Administration Fee: £2,170.00
Total Cost: £3,342.10

 

 

[Dunc]

Very similar to my quote, though I haven't taken them up on it yet. 

Check the T&Cs. ProTek and Build Warranty specifically exclude the first 2 years after completion and assume that this is covered by the main contractor's insurance. SelfBuildZone do not have this exclusion, from my investigations. I guess this only matters if you're not using a main contractor.

Don't forget there will be site visit costs on top (another £1.5-£1.8k for me in the Highlands).

Stage certs are only needed if you are drawing down a mortgage during the build - they demonstrate to your mortgage company that you have achieved a particular point in the build to allow them to release funds. After completion they're irrelevant because you have the final sign off, AFAIK.

[Bancroft]

14 minutes ago, Dunc said:

Check the T&Cs. ProTek and Build Warranty specifically exclude the first 2 years after completion and assume that this is covered by the main contractor's insurance. SelfBuildZone do not have this exclusion, from my investigations.

Interesting.  Thanks for highlighting this.  I was close to going with Protek but now may need to do a little more research.  Even if using a main contractor, having the 2 year window just starts to make things messy and opens the door to 'not our problem' arguments between different insurers.

[Amateur bob]

1 hour ago, Dunc said:

Very similar to my quote, though I haven't taken them up on it yet. 

Check the T&Cs. ProTek and Build Warranty specifically exclude the first 2 years after completion and assume that this is covered by the main contractor's insurance. SelfBuildZone do not have this exclusion, from my investigations. I guess this only matters if you're not using a main contractor.

Don't forget there will be site visit costs on top (another £1.5-£1.8k for me in the Highlands).

Stage certs are only needed if you are drawing down a mortgage during the build - they demonstrate to your mortgage company that you have achieved a particular point in the build to allow them to release funds. After completion they're irrelevant because you have the final sign off, AFAIK.

interesting, they made no mention of these site visit costs i will read further

 

im currently using a business loan to get the house built as i was having problems getting a self build mortgage with it being on a farm, the plan was to get it built then remortgage with a personal loan as itll be easier to get a lender, do you think this 2 year gap situation will affect my ability to get this mortgage?

thanks!

[SBMS]

39 minutes ago, Amateur bob said:

interesting, they made no mention of these site visit costs i will read further

 

im currently using a business loan to get the house built as i was having problems getting a self build mortgage with it being on a farm, the plan was to get it built then remortgage with a personal loan as itll be easier to get a lender, do you think this 2 year gap situation will affect my ability to get this mortgage?

thanks!

I think your quote included site inspections. This is typically what protek mean when they say technical Audit fee. 
 

many latent defect warranties exclude the first two years - but then have a clause to pick it up in the event that the contractor is out of business or can’t be claimed against. Does protek have this?

 

stage certificates are used for a self build mortgage only really and allow you to draw the next stage of funds down. Not relevant for you if using a business loan. 
 

Try and get a warranty provider that can appoint the same company for your building control inspections as your warranty inspections - it does make it much easier in my opinion. 
 

Have you tried a quote from selfbuildzone? I found them much easier and they were only a few hundred more than protek. 

[Amateur bob]

48 minutes ago, SBMS said:

I think your quote included site inspections. This is typically what protek mean when they say technical Audit fee. 
 

many latent defect warranties exclude the first two years - but then have a clause to pick it up in the event that the contractor is out of business or can’t be claimed against. Does protek have this?

 

stage certificates are used for a self build mortgage only really and allow you to draw the next stage of funds down. Not relevant for you if using a business loan. 
 

Try and get a warranty provider that can appoint the same company for your building control inspections as your warranty inspections - it does make it much easier in my opinion. 
 

Have you tried a quote from selfbuildzone? I found them much easier and they were only a few hundred more than protek. 

I did an online quote they were a fair  it dearer, whats easier about them? Will i need to give these protek guys much warning about when im starting founds? I might start in a few weeks time or it could be longer just depends on builder im currently trying to apply for sepa CAR license so not sure how long thatll take?

 

Cheers

[Amateur bob]

2 hours ago, Bancroft said:

Interesting.  Thanks for highlighting this.  I was close to going with Protek but now may need to do a little more research.  Even if using a main contractor, having the 2 year window just starts to make things messy and opens the door to 'not our problem' arguments between different insurers.

Yes this is a potential issue, did you have much bother applying for a CAR license from SEPA? I applied last week and paid the fee but not sure how long itll take?

 

Cheers

[SBMS]

1 hour ago, Amateur bob said:

I did an online quote they were a fair  it dearer, whats easier about them? Will i need to give these protek guys much warning about when im starting founds? I might start in a few weeks time or it could be longer just depends on builder im currently trying to apply for sepa CAR license so not sure how long thatll take?

 

Cheers

It was easier getting a quote from build zone. Easier organising warranty inspections with building control. Could pick up the phone and speak to someone at self build zone. But if it’s just a box ticking for a mortgage you’re probably fine to go the cheaper route?

 

I think protek does cover you if builder doesn’t in first two years so they are probably like for like in many respects:

 

 

[Dunc]

12 hours ago, SBMS said:

... I think protek does cover you if builder doesn’t in first two years ...

Which may be fine if you use a main contractor. If you manage the build and contract separate trades yourself this doesn't apply, based on my discussion with them. But I'd suggest it's worth a phonecall to confirm individual cases.

 

Another thing to look out for is flat roofs - ProTek required a separate Insurance Backed Guarantee for the flat roof. Usually this is provided by the roofer, but obviously could limit your choice of contractor as not all will provide this. Possible to take out such a guarantee yourself but for £ several hundred.

[SBMS]

11 hours ago, Dunc said:

ProTek required a separate Insurance Backed Guarantee for the flat roof.

@Dunc you’re absolutely right - forgot this. Protek wanted a separate guarantee which was another reason I went with Build Zone. They also asked about 1/3 the number of questions protek did so my gut just told me there cover was more comprehensive. I felt if if accidentally answered one of proteks question inaccurately it’d be used later.