APPLICATION ASSESSMENT

APPLICATION ASSESSMENT 2018-06-12T21:40:25+11:00

How SecureBuild assesses an application?

SecureBuild assesses an application in line with the eligibility (registration) model lodged with the NSW State Insurance Regulatory Authority (SIRA).

The flow chart below sets out the key elements of SecureBuild’s registration (eligibility) assessment process.

The application for registration (eligibility) process has three simple steps:

  1. Licensing
  2. Minimal Financial Requirements
  3. Risk Rating.

The first two steps determine whether SecureBuild will provide cover, and the last step determines how much ‘contribution’ (premium) discount a builder receives when purchasing HBC certificates.

Stage 1: Licensing

The initial stage of the process confirms that the building business holds the appropriate licence for the work outlined in the application. This may also involve an assessment of the licensing background of the nominated supervisor, and directors or partners of the building business.

Stage 2: Minimal Financial Requirements

SecureBuild has set minimum financial requirements (MFR’s) that need to be met in order to obtain cover.

The MFR report  sets out the net tangible assets a building business holds and includes a number of minimum requirements that need to be validated by an accountant.

If a builder doesn’t currently have HBC cover, prior to lodging an application with SecureBuild, the SecureBuild MFR Report  should be completed by an accountant and included with the application.

Builders and contractors who have existing cover with another provider do not need to provide a MFR report.

The Net Tangible Asset (NTA) position of a building business determines the turnover level SecureBuild will allocate to a builder. The table below sets out our NTA requirements and the turnover levels applicable.

TURNOVER LEVELS

Annual Turnover $0 -<$1m $1m – < $2m $2m – <$5m $5m – <$20m $20m >
Category 5 4 3 2 1
Net Tangible Asset (NTA) Requirement $12,000 to $36,000 $36,001 to $105,000 $105,000 to $270,000 $270,001 to $1,200,000 >$1,200,000
Approximate No. of projects 1 to 2 2 to 5 5 to 20 20 to 50 >50

Stage 3: Risk Rating

Applications that have reached this point in the process have been accepted by SecureBuild.

The next step, risk rating, determines the level of ‘contribution’ (premium) discount to be applied to a builder purchasing HBC certificates for homeowner clients.

Risk Rating Risk Criteria Premium Discount
A Licensed builder (>10 years industry experience), long history of extremely high levels of compliance, no adverse history with NSW Fair Trading or NCAT claims, high-quality quality assurance systems in place, excellent financials, high levels of compliance with SecureBuild’s terms and conditions and high ratings from SecureBuild Inspectors and your clients. 40%
B Licensed builder (>5 and <10 years industry experience), considerable history of high levels of compliance, no or minimal adverse history with NSW Fair Trading or NCAT claims, well developed quality assurance systems in place, excellent financials, high levels of compliance with SecureBuild’s terms and conditions and high ratings from SecureBuild’s Inspectors and your clients. 30%
C Licensed builder (>5 years industry experience), good history of high levels of compliance, no or minimal adverse history with NSW Fair Trading or NCAT claims, good quality assurance systems in place, good financials, good levels of compliance with SecureBuild’s terms and conditions and good ratings from SecureBuild Inspectors and your clients. 20%
D Licensed builder (<5 years industry experience), developing history of compliance with legislation and regulations, no or minimal adverse history with NSW Fair Trading or NCAT claims, developing quality assurance systems, developing financials, good levels of compliance with ABS’s terms and conditions and reasonable ratings from SecureBuild’s Inspectors and your clients. 10%
E New entrant to industry, no history of compliance, or an adverse history with NSW Fair Trading or NCAT claims, no quality assurance systems in place, poor or developing financials, no experience in meeting SecureBuild’s terms and conditions or continual failure to abide the terms and conditions, and/or poor ratings from SecureBuild’s Inspectors and your clients. 0%

Our assessment of turnover level and risk rating will determine a builder’s overall SecureBuild classification. The table below sets out the 25-possible turnover/risk rating classifications.

TURNOVER/RISK RATING CLASSIFICATIONS

Annual Turnover $0 -<$1m $1m – < $2m $2m – <$5m $5m – <$20m $20m >
Category/Risk Rating 5 4 3 2 1
A A5 A4 A3 A2 A1
B B5 B4 B3 B2 B1
C C5 C4 C3 C2 C1
D D5 D4 D3 D2 D1
E E5 E4 E3 E2 E1

How long does the application assessment take?

  • Applicants applying online and currently have HBC cover receive confirmation of successful registration immediately after the primary licensee, partner or director of the building business has agreed to and accepted SecureBuild’s Terms and Conditions.
  • Applicants using a form will receive a response within two business days.
  • If further information is required, SecureBuild will contact the builder within two business days of the receipt of the application.
  • Once all information has been received, notification of the outcome of the application will be sent within two business days.

What if Im not happy with the outcome of SecureBuilds assessment process?

If you’re dissatisfied with the outcome of the application, the decision can be appealed by lodging a review application with SecureBuild’s Decision Review Committee at drc@securebuild.com.au or by calling SecureBuild at 13 33 14.

If you believe SecureBuild has not considered an application for cover in line with the law and guidelines, a request can be made to the State Insurance Regulatory Authority (SIRA) at compliancereview@sira.nsw.gov.au to investigate any breaches of the Act, Regulations or guidelines.

Learn more about  How to review a decision made by SecureBuild .