The BCRP (Building Contract Review Program)
All builders intending to do work requiring home building compensation cover (currently only available through the HBCF) must first apply for eligibility through their appointed Distributor with us.
Obtaining eligibility means that you’ve been assessed by our Eligibility Risk Manager and have been granted the entitlement to apply to us for certificates of insurance or cover for individual home building projects.
Eligibility is granted as a combined limit of Approved Open Job Value and Approved Open Job Number, with a Maximum Contract Value limit placed on jobs according to their Construction Type (C01 to C09).
Other conditions can be placed on a grant of eligibility including the requirement to participate in the Building Contract Review Program (BCRP).
The purpose of the BCRP is to provide an independent review of a Builder’s preparation to contract for building project (Project) and their
competency to manage the completion of that Project to acceptable industry standards.
The BCRP is intended to test the competence of the Builder to complete a Project and not their compliance with building standards.
BCRP services are intended to be a transition phase for Builders to gain meaningful experience through the support of a BCRP Service Provider.
The BCRP aims to assist the following builder groups with access to Home Building Compensation scheme eligibility who might not meet the eligibility requirements otherwise:
new entrants to the building industry who have never before entered into a building contract with a home owner of $50,000 or more (or has never been a key manager within a building business that did so);
where the Builder has no demonstrated experience in commencing and successfully completing Projects of a similar nature to the ones requested for home warranty building
compensation cover; and
where the Builder’s Project gross margins have been identified as requiring further review as part of their Home Building Compensation Scheme eligibility assessment.
When all other relevant financial and non-financial requirements are met for HBCF eligibility, BCRP participation may be required for Builders who:
have never contracted and completed construction of a new single dwelling or alteration project;
are proposing to contract a larger or more complex project than their experience supports; or
have never before contracted with a developer and completed construction of a multi-unit project as the key manager within a building business.
BCR Component 1 - Contract document review.
Review the contract documentation for each Project to ensure that:
(a) the correct parties to the residential building contract; site address etc. are identified;
(b) the correct name and licence number of the Builder’s trading entity is shown on all documentation (i.e. name on building contract, certificate of insurance application and licence is the same);
(c) the licence held by the Builder’s trading entity covers all the work being contracted;
(d) the building contract terms do not create a commercial risk for the completion of the Project because of unfair terms, provisions etc. (including contracts with developers and architect administered contracts);
(e) the Project application for HBCF Insurance is consistent with the BCR Service Provider’s understanding of the Project; and
(f) review the Project’s construction schedule provided by the Builder to ensure that it is appropriate for the type and complexity of the Project.
Click on links below to view and download document: