October 2023
Updated Frequently Asked Questions
Barratt have recently received questions regarding the extended warranty offered to their Phase One customers and we have set out some answers below.
If you have a question not covered here, please get in touch by using info@darwingreenconstruction.co.uk
In the event that BDW Trading Ltd or BDW Cambridgeshire Ltd (see question 3 below) were to enter administration, liquidation or any other form of insolvency who would be responsible for covering any claims under the warranty?
Please note that BDW Cambridgeshire is not a limited company, it is a division of BDW Trading Limited. In the highly unlikely event that BDW Trading Limited ceased trading there is no other entity to step into the warranty. Much in the way if the NHBC ceased to exist there would no longer be any benefit under the NHBC warranty.
Where can we find a copy of the terms and conditions referred to in the warranty?
Please refer to the opening line which reads (our emphasis) “These terms and conditions” meaning the terms in the warranty itself. There are no separate terms and conditions.
Two different legal entities are referred to in the warranty. BDW Trading Ltd and BDW Cambridgeshire Ltd. Which of these entities holds the liabilities under the warranty?
As above, the letter does not refer to two legal entities (note there is no “Ltd” after the words BDW Cambridgeshire). It refers to BDW Trading Limited which is the legal entity given the warranty.
Will the same level of dispute resolution service provided under the NHBC warranty be applied to this warranty?
No. The NHBC dispute resolution service can only be provided during the duration of the NHBC warranty itself.
In the event that you are unable to undertake the rectification works under the warranty will warranty holders have the option to arrange the work themselves and claim this back from you? What would the mechanism for that be?
You should take legal advice on this matter as it is not for us to advise what would happen in the event of a breach of the warranty.
What is the maximum cover of the Warranty? Will it be adjusted according to inflation?
Please refer to paragraph 10 which states that the liability under the warranty is limited to the greater of (i) the maximum liability of NHBC under the Buildmark policy and (ii) the Original Purchase Price. Please therefore refer to your original policy to determine whether the NHBC liability (and therefore BDW’s liability during this extended warranty term) will be adjusted by inflation or not.
Given that the 10 year NHBC warranty does not exclude anything covered by buildings insurance and this warranty is intended as an extension why does paragraph 7 exclude matters covered by buildings insurance?
This is the same position as under the NHBC Conditions. Please refer to the general exclusions section of your NHBC policy.
What is meant by you not covering the NHBC’s obligations given that the warranty is intended to continue to meet the standard of the NHBC guarantee?
The warranty covers the 15 year period after expiry of the NHBC policy. The NHBC has no obligations during that period therefore there would be no obligations of NHBC for BDW to cover.
Paragraph 7 states that we cannot make a claim for matters which ought to have been brought to Barratt’s attention within the 10 year period, and that any delay in doing so will also prejudice any claim and Barratt’s will not provide cover for this this. Where a matter arises shortly after the change from the 10 year original warranty to the 15 year extension what will be the mechanism for determining whether it should have been brought to Barratts attention?
Should such a situation arise it would be dealt with on the facts at the relevant time.
With reference to question 9 above what are the proposed Alternative Dispute Resolution provisions in the event that there is a dispute?
As noted the NHBC dispute resolution provisions do not apply. This is an English law warranty so would be subject to the jurisdiction of the courts of England and Wales.
What are the minimum claim limits?
Please refer to your NHBC policy.
In the event of a claim will incidental expenses such as temporary accommodation costs and losses as a result of any structural defects that may arise be covered by the warranty?
Please refer to your NHBC policy.
In the event that Barratts sell the freehold of the buildings occupied by leaseholders a similar warranty to this one be given to the new freeholders and will that held by the leaseholders still be valid?
Regardless of whether the properties are freehold or leasehold, BDW will offer the same warranty. Any freeholder or leaseholder who currently has the benefit of an NHBC Buildmark warranty will have the benefit of the BDW warranty for the 15 year period after expiry of the NHBC Buildmark policy. Any person(s) buying properties on the development after a warranty has been agreed will not be given a ‘new’ warranty, but they will have the benefit of the remaining period of the BDW warranty.