43Claim for defective guaranteed work and rectification

43 Claim for defective guaranteed work and rectification (1) The scheme's trust deed may include a provision to the effect that if a beneficiary makes a claim relating to defective guaranteed work, the trustees may: (a) arrange to have the work rectified; or (b) pay the costs of the rectification to the beneficiary. (2) The trust deed may also include a provision to the effect that if the beneficiary has the defective guaranteed work rectified before making the claim, the trustees are entitled to reject the claim.

Chapter 3 Fidelity fund schemes and approved schemes Part 3.2 Approval criteria Division 5 Fidelity certificate and losses covered Building (RBI and Fidelity Fund Schemes) Regulations 2012 25 (3) If the trust deed includes a provision mentioned in subregulation (1) and the trustees pay the costs of rectification to a beneficiary, the scheme is not liable to pay an amount to any other person for financial loss incurred because of: (a) the same defective guaranteed work; or (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.