22Claim for defective guaranteed work and rectification

22 Claim for defective guaranteed work and rectification (1) For a claim relating to defective guaranteed work, the insurer may: (a) arrange to have the work rectified; or (b) pay the costs of the rectification to the beneficiary. (2) However, if the beneficiary has the defective guaranteed work rectified before making the claim, the insurer is entitled to reject the claim. (3) If the insurer pays the costs of rectification to the beneficiary, the insurer is not liable to indemnify any other person for financial loss incurred because of: (a) the same defective guaranteed work; or

Chapter 3 Fidelity fund schemes and approved schemes Part 3.1 Application for approval of fidelity fund scheme Building (RBI and Fidelity Fund Schemes) Regulations 2012 14 (b) any other defective work arising directly or indirectly from that defective guaranteed work. Example for subregulation (3) A successor in title to a contracting owner is not entitled to payment for defective guaranteed work if the contracting owner has already received payment to cover losses incurred in relation to that work.