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RulesFor builders and developers registered with NHBC

Notes about the Rules Definitions and Interpretations

Definitions and Interpretation1) DefinitionsandInterpretation

ExceptwherethecontextortheexpressprovisionsoftheRulesotherwiserequire:

a) BuildersandDeveloperstowhichtheseRulesapplymaybereferredtoas‘you’,‘your’or‘yourself’;

b) referencestopersonsshallincludethoseofeithersexandalsofirmsoranyotherbody(whethercorporateorunincorporated),trust,stateoragencyofstate(ineachcase,whetherornothavingseparatelegalpersonality);

c) wordsimportingthesingularnumberincludethepluralandviceversa;

d) referencestoanylegislationincludeanystatutoryextension,modificationorre-enactmentofitandregulationsmadeunderit;

e) headingsandsub-headingsareforeaseofreferenceonlyandarenottobetakenintoconsiderationintheinterpretationorconstructionoftheRules;

f) thewords‘build’and‘built’include,whererelevant,buildingworkbywayofconversionand/orrenovationandbuildingworkundertakenonyourbehalf;

g) theexpressions‘including’,‘inparticular’and‘forexample’aretobeconstruedasbeingbythewayofillustrationoremphasisonlyandarenottobeconstruedaslimitingthegeneralityofanyforegoingwords;

h) thefollowingwordsandexpressionsshallhavethefollowingmeanings:

Application for NHBC Cover

ThereturntoNHBCofacompletedNHBCapplicationformtogetherwithpaymentinfullofthefeespayableunderRule13fortheHome(s)youhaveindicatedontheformthatyouwishtoregisterforNHBCCover.

Arbitrator

MeansanArbitratororArbiter.

Associate

AnyBuilderorDeveloperwhoatanytimeissubjecttoanysubstantialdegree,whetherdirectorindirect,tothesameownershipmanagementinfluenceorControlasyou.

Bond

Anagreement(includingbutnotlimitedtoanagreementpursuanttosection38oftheHighwaysAct1980orsection104oftheWaterIndustryAct1991)underwhichyouand/oranAssociateofyouisobligedtoundertake,fundorprocuretheundertakingorfundingofworks(includingbutnotlimitedtotheconstructionofroads,sewers,drains,playareas,vergesand/oropenspaces)andunderorinrespectofwhichNHBCagreestoactasasurety.

Builder

Anyperson,firm,companyorotherorganisationthatbuildsHomes.

Building Regulations

RegulationsmadeundertheBuildingAct1984orwhereapplicabletheBuilding(Scotland)Act2003,oranysimilarlegislationapplicabletotheconstructionofaHome.

Common Parts

Inrelationtoaflatorotherdwelling,CommonPartsmeans:

i. thepartsofabuildingcontainingorprovidingsupporttoit;

ii. anygarage,permanentoutbuilding,retainingwall,boundarywall,externalhandrailorbalustrade,path,drive,gardenareaorpavedareanewlybuiltbytheBuilderatthedateoftheNoticeofCover;

iii. anydrainagesystemservingit;

iv. anyexistinggarage,permanentoutbuilding,retainingwallorboundarywallthatwassoldtothefirstOwnerundertheoriginalcontract.

Conditions

AdditionaltermsandconditionsapplicabletoyoufromtimetotimeasimposedbyNHBCinadditiontotheRules.

Consumer Code for Home Builders

TheConsumerCodeforHomeBuildersschemeoperatedbyConsumerCodeforHomeBuildersLtd(includingtheassociatedrulesfortheindependentdisputeresolutionscheme)asmayberetained,amendedorreplacedfromtimetotime.

Control

Whenreferringtoabodycorporate,meansthepowerofapersontosecurethattheaffairsofthebodycorporateareconductedinaccordancewiththewishesofthatperson:

i. bymeansoftheholdingofshares,orthepossessionofvotingpower,inorinrelationtothatoranyotherbodycorporate;or

ii. byvirtueofanypowersconferredbytheArticlesofAssociation,oranyotherdocument,regulatingthatoranyotherbodycorporate,anda‘changeofcontrol’occursifapersonwhocontrolsanybodycorporateceasestodosoorifanotherpersonacquirescontrolofit.

TheRulesthatfollowareeffectivefrom

1stJanuary2021(EffectiveDate).Theyamend

therulesapplyingtoBuildersandDevelopers

thatwereintroducedbyNHBCon1stMarch2020.

Definitionsofwordswithspecialmeaningsinthe

Rulesaresetoutonthispageandpage3.Please

readtheRulescarefully.Ifyouhaveanyquestions

aboutthemoryourregistrationwithNHBC,

pleasecontactNHBCCustomerServiceson

0344 633 1000orwritetousatNHBCHouse,

DavyAvenue,Knowlhill,MiltonKeynesMK58FPor

[email protected]

isalsoavailableonwww.nhbc.co.uk.

Contents

DefinitionsandInterpretation 2

Registration 4

RegistrationofHomesforNHBCCover 6

HomesnotRegisteredwithNHBC 8

NHBCCover 8

ClaimsandWorkrequiredbyNHBC 10

ClaimsandResolution 12

PowersofNHBC 13

PowersofNHBConspecifiedevents 14

Reviewsandappeals 14

AppealsinScotland 16

Effectofinstructionsetc. 16

CancellationofRegistration 17

ReinstatementofRegistration 18

ConsumerCodeforHomeBuilders 19

Obligationsundertheseand 19earlierRules

Communicationsandinformation 19

Contractualmatters 21

Appendix 24

ForbuildersanddevelopersregisteredwithNHBCpage3

Contract

Alegallybindingagreement(orinScotlandmissive)betweenthefirstOwnerandtheBuilder,DeveloperorathirdpartyauthorisedbyNHBCforthepurchase,building,renovationorconversionofaHome.

Damage

PhysicaldamagetoaHomecausedbyaDefect.

Defect

ThebreachofanyNHBCRequirementbytheBuilderoranyoneemployedbyoractingfortheBuilder.FailuretofollowtheguidancesupportinganNHBCRequirementdoesnotamounttoaDefectiftheperformancerequiredbytheNHBCRequirementisachievedbyothermeans.

Developer

Anyperson,partnership,companyororganisationthatarrangesfortheconstructionofHomesorisconcernedinorwithsucharrangements.

Effective Date

IsthedatereferredtointheNotesabouttheRulesonpage2.

Hazardous Site

ASiteoranypartofaSitewhichisinaconditionwhichgivesrisetoanabnormalriskofdamagetoordefectsinhomeswhichareormaybebuiltonit.Itincludes(butisnotlimitedto)aSitewhichinanypart:

i. issubjecttolandslip;

ii. ismade-upground;

iii. ispartofaminingarea,whetherpast,currentorcontemplated;

iv. isofsuchanaturethatthelocalauthorityoranapprovedinspectorhasimposedspecialconditionsregardingfoundations;

v. comprisesclaysoilwhichhas(orhashadwithinthepreviousfiveyears)treesonornearit;

vi. isliabletoflooding;

vii. comprisessoilwithapeatcontentintheground;

viii. isadverselyaffectedbythechemicalcontentoftheground;or

ix. isaffectedbylandfillgasorradon.

Home

Thehouse,bungalow,flatorotherpremisesreferredtoinaSiteNotificationorApplicationforNHBCCover,togetherwith:

i. theCommonParts;

ii. thedrainagesystemforwhichtheOwnerisresponsible;

iii. anynewelectricalfixedwiringandlightingsystem,heatingsystem,airconditioning,smokealarms,wastedisposalunitsorwatersofteningequipmentinthathouse,bungalow,flatorotherpremises;

iv. anygarage,permanentoutbuilding,retainingwall,boundarywall,externalhandrailorbalustrade,path,drive,gardenareaorpavedareabuilt,soldorsuppliedundertheContract.

Homedoesnotincludeanyfence,temporarystructure,swimmingpool,liftoranyelectrical,electronicormechanicalequipment(whetherbuiltinornot)exceptitemslistedin(iii)aboveanditemswhichareincludedintheHomeinordertocomplywiththeBuildingRegulations.

NHBC

NationalHouse-BuildingCouncilisacompanylimitedbyguaranteeandregisteredinEnglandandWalesnumber320784.

TheregisteredofficeisNHBCHouse,DavyAvenue,Knowlhill,MiltonKeynes,BuckinghamshireMK58FP.

NHBC Company

AnycompanywithintheNHBCgroupofcompanies,includingNHBCBuildingControlServicesLimitedandNHBCServicesLimited.

NHBC Cover

Thecoverprovidedortobeprovided(asthecontextmayrequire)foraHomebyNHBC(oritssubsidiariesfromtimetotime)andtheBuilderunderBuildmark,BuildmarkChoice,BuildmarkLink,BuildmarkSolo,BuildmarkConnectoranysimilarproductfromtimetotime(asapplicable).

NHBC Offer Documents

IsdefinedinRule20)a)i)

NHBC Offer Notification

IsdefinedinRule20)a)ii)

NHBC Requirements

ThemandatoryrequirementsinconnectionwithbuildingandassociatedmattersadoptedbyNHBCandinforceeither:

i. inthecaseofaHomewithnewlybuiltfoundations,whentheconstructionofthefoundationsisbegun;or

ii. inanyothercase,whenconstruction,conversionorrenovationoftheHomeisbegunbyoronbehalfoftheBuilder.

Notice of Cover

Asapplicable:

i. acertificateornoticeissuedbyNHBCstatingthataHomeappearstohavebeendesignedandconstructedsubstantiallyinaccordancewithNHBCRequirements;or

ii. acertificateornoticeissuedbyNHBCfollowingapre-handoverinspectionandstatingorindicatingthatNHBCiswillingtoprovideNHBCCover;or

iii. acertificateornoticeissuedbyNHBC(butnotincludinganycertificateorstatementgivenfollowingrepairstoaHomeunderNHBCCover)statingthatworktoaHomeappearstohavebeencarriedoutinasatisfactorymanner;or

iv. aFinalCertificateissuedundertheBuildingAct1984(EnglandandWalesonly);or

v. aCompletionCertificateissuedundertheBuilding(Scotland)Act2003.

Owner

TheprospectivefirstownerofaHometowhomNHBCandaBuildermakeanofferofNHBCCoverforthatHome.Afterthatitmeans:

i. thepersonidentifiedastheowneroftheHomeonthecompletedformforacceptanceoftheNHBCCover;or

ii. anylaterowner,mortgageeinpossessionorheritablecreditorinpossessionoftheHome.

IfthereisuncertaintyastotheidentityoftheownerofaHomeatanytime,NHBCmayinitssolediscretiondecide,forthepurposesoftheNHBCCoverfortheHomeandtheRules,whotheowneris.

Owner Data

Means:

i. theOwnername,correspondenceaddress,emailaddress;

ii. theOwner’sconveyancerdetails;

iii. plotaddressoftheHome(s);

iv. anticipateddatesforexchangeofcontractsandlegalcompletionoftheHome(s);

v. notificationifthepurchaseoftheHome(s)doesnotproceedthroughtoalegallybindingagreement(orinScotlandmissive)forwhateverreason;and

vi. anyotherdatathatmayberequestedbyusfromyou.

Product Plot Schedule

TheformsenttoyoubyNHBCinresponsetoaSiteNotification,inorderforyoutoprovidedetailsofallplannedplots.

Register

TheRegisterofBuildersandDevelopersmaintainedbyNHBCinEnglandandWales,Scotland,NorthernIrelandandtheIsleofManrespectively.

Registration

TheentryofaBuilderorDeveloperontheRegister.‘Registered’referstoBuildersandDeveloperswhoseregistrationiseffective(thatistosayithasnotbeencancelledorsuspended).

Reservation Stage

WhentheOwnerhasreservedaplotwhereaHomeistobebuiltandareservationfeehasbeenpaidforsuchplot.

Resolution Service

ThedisputeresolutionserviceprovidedbyNHBCunderNHBCCovertoassistwiththeresolutionofdisputesbetweenOwnersandBuildersorDevelopersinconnectionwiththeobligationsofBuildersandDevelopersunderNHBCCover.

Rules

Meansthetermsandconditionssetoutinthisdocument.

Site

Anareaoflandthatiscoveredbyasingledetailedplanningconsentorseriesofconsentsrelatingtocontinuousdevelopment.

Site Notification

ThesupplyofdetailstoNHBC(ontheformsuppliedbyNHBC)ofHomestobeconstructedonaSiteandofotherfactorsaffectingorrelatedtothatSitewhichmayberequiredbyNHBC.

Structure

Thefoundationsofthehouse,bungalow,flatorpremisesandofanygarageorpermanentoutbuildingandthestructuralload-bearingpartsofitsfloors,wallsandrooftogetherwithanyretainingwallsnecessaryforitsstability.Structureincludesthefoundationsandanystructuralload-bearingpartsofanyCommonParts.

Year

Meansaperiodof12consecutivemonthscommencingon1stApril.

Rules for builders and developers registered with NHBC

Registration

Details of the Register

2) DetailsoftheRegistermaybeobtainedfromNHBCduringnormalbusinesshours.

Becoming Registered3) Youwill,onapplication,beconsideredforRegistrationwithNHBCifyouareaBuilderorDeveloperwiththeabilityand

commitmenttobuildordevelophomesinaccordancewithNHBCRequirements.

Registration and Conditions of Registration4)

a) InresponsetoyourapplicationforRegistration,NHBCmaydecide: i) tograntyourapplicationforRegistrationunconditionally; ii) tograntyourapplicationsubjecttoConditions; iii) todeferconsiderationofyourapplicationpendingfurtherenquiriesortheprovisionoffurtherinformation; iv) torejectyourapplication.

b) NHBCwillgiveyouwrittennoticeofitsdecision.

Conditions of Registration5)

a) NHBCmaymakeyourRegistrationsubjecttoConditions:

i) whenitdealswithyourapplicationforRegistration;

ii) atanytimeduringyourRegistration.

b) NHBCmayrevokeoramendanyConditionstowhichyourRegistrationissubjectatanytimeduringyourRegistration.

c) Conditionsmayincludethefollowing:

i) alimitonthenumberofplotsinrespectofwhichyoumaysubmitaSiteNotificationoranApplicationforNHBCCover;

ii) arequirementthatyoupayafurtherchargetoNHBCinrespectofanyHomeforwhichyouhavesubmittedaSiteNotificationoranApplicationforNHBCCover(inadditiontoanychargeorsurchargepayableunderRule14);

iii) arequirementtodischarge,ortoprovideNHBCwithreasonablesecurityforthedischargeof,anyobligationorliabilitytowhichyouoranyAssociateisormaybecomesubjectundertheRulesoranyConditionsimposedbyNHBCundertheRules,underanyotherapplicablerulesorunderanyNHBCCover;

iv) arequirementtoindemnifyNHBC,ortoprovideNHBCwithreasonablesecurityagainstanyliabilitywhichithasincurredormayincurbyreasonofyouractsoromissionsorthoseofanyAssociate;

v) arequirementtoreimburseNHBCthewholeorareasonableproportionofanypaymentwhichNHBChasmadeorisliabletomakeorhasagreedtomakebyreasonoftheactsoromissionsofanyotherBuilderorDeveloperinrelationto:a anyHomeinrespectofwhichyousubmittedaSiteNotificationoranApplicationforNHBCCover;b anyotherHomeonthesameSiteasthatHome;c thecompletionofanyworkson,servingorconnectedwiththatSiteinrespectofwhichNHBChas

agreedtoactasasuretyorprovideanindemnityorguaranteeinfavourofathirdparty.

d) IfNHBCdecidestoadd,amendorrevokeConditionsapplicabletoyourRegistrationNHBCwillgiveyouwrittennoticeofthatdecisionandthatdecisionwilltakeeffect21daysafteryoureceivethatnoticeunlessyouexerciseyourrightsunderRule31).

e) IfNHBCrequiresyoutoprovideitwithsecurity,youmustprovidethatsecurityintheformspecifiedbyNHBC.NHBCmayrequireyoutoprovideitwithsecurity:

i) intheformofabondexecutedbyabank,insurancecompanyorsimilarentityapprovedbyNHBC;

ii) intheformofenforceableundertakingsorguaranteesgiventoNHBCbyoneormoreofyourdirectorsorshareholdersorbyanyotherthirdpartyorthirdpartiesspecifiedbyNHBC;

iii) inanyotherformitmayreasonablyspecify.


Subscription

6)

a) YoumustpaytheannualRegistrationsubscriptionspecifiedbyNHBCforeachYear(orpartthereof)inwhichyouareRegistered.

b) IfyourRegistrationissuspendedorcancelledatanytimeduringaYearyouwillnotbeentitledtoawaiverorrefundofanypartofthesubscriptionpaidorpayableunderRule6)a)forthatYearandyouwillremainliabletopayNHBCanysubscriptionpaymentsthatremainunpaidatthedateofsuspensionorcancellation.

Application of the Rules7)

a) TheRulesapplyfromtheEffectiveDatetoBuildersandDevelopersRegisteredontheEffectiveDateandfromthedateofapplicationtoBuildersandDevelopersthatapplyforRegistrationaftertheEffectiveDateandtheycontinuetoapplyuntilsuchtimeasyoubothceasetobeRegisteredandceasetohaveanyactualorcontingentliabilitiesunderorinconnectionwiththeRules,anyConditions,anyNHBCCoverand/oranyBonds.

b) AnyConditionsapplicabletoyourRegistrationwillapplytoyouinadditiontotheRulesuntiltheyarerevokedoramendedbyNHBC.

c) IntheeventofanyconflictorconfusionbetweenaprovisionintheRulesandanyCondition,theConditionshallprevail.

Cover under NHBC or Other Home Warranty Schemes8)

Thisruleisnotapplicable.NHBCregisteredbuildersanddevelopersarefreetoregisterwithanyotherprovidersofnewhomewarrantyproductsandusethenewhomewarrantyproductsofthesealternativeproviders,insteadofNHBC’snewhomewarranty.

Builders and Developers9)

a) IfyouareRegisteredonlyasaDeveloperyoumustemployaRegisteredBuilderasthemaincontractortobuildanyHomeforwhichyousubmitaSiteNotificationoranApplicationforNHBCCover.

b) IfyouareRegisteredasaBuilder,youmayalsoactasaDeveloperandyoumustthencomplywiththeRulesastheyapplytoaDeveloper.

Building Standards10)

a) YoumustensurethateveryHomeforwhichyousubmitaSiteNotificationoranApplicationforNHBCCoverisdesignedandbuiltinaccordancewiththeapplicableNHBCRequirements.

b) IfNHBCBuildingControlServicesLimitedisappointedbyyoutoactastheApprovedInspector(inEnglandandWales)foranyHome,youmustcomplywiththeapplicabletermsandconditionsasnotifiedtoyoubyNHBCBuildingControlServicesLimited.Note:foreaseofreferenceacopyofthetermsandconditionsapplicableasattheEffectiveDateisincludedinanappendixtothebookletcontainingtheseRules.

c) IfanNHBCCompanyisappointedbyyoutoactastheCertifier(inScotland)foranyHomeyoumustcomplywiththeapplicabletermsandconditionsasnotifiedtoyoubytheNHBCCompany.

Specialist professional information11)

a) InScotland,NHBCmayrequireyoutoprovidespecialistinformationfromconsultantsofaparticularprofession.Ifso,youmustadvisethemofNHBC’sinvolvementandifrequestedbyNHBCensurethattheyareboundtoNHBCinrespectoftheirdutyofcareasiftheyhadbeeninstructedbyNHBCinthefirstinstance.

b) NHBCmayrequireyoutohavetheStructureofaHomedesignedandinspectedduringconstructionbyanindependentprofessionalacceptabletoNHBC,inwhichcaseyoumustfollowanyinstructionsgivenbythatprofessional.

Registration for NHBC Cover

Requirement to submit Site Notifications and Applications for NHBC Cover

Stage One: Site Notification

12)

a) YoumustsubmittoNHBCaSiteNotificationforeachhomebuiltortobebuiltbyyou,oronyourbehalf,tobesold

byyoutothefirstowner.

b) YoumustsubmittoNHBCaSiteNotificationforeachhomebuiltortobebuiltbyyou,oronyourbehalf,onland

ownedortobepurchasedbythefirstowner.

c) YoumaysubmittoNHBCaSiteNotificationforeachhomebuiltortobebuiltbyyouonbehalfofathirdparty

authorisedbyNHBCtobesoldbythethirdpartytothefirstowner.

d) IfyousubmitaSiteNotificationunderRules12)a),b)orc)youmust:

i) includeintheSiteNotificationparticularsofallofthehomesbuiltortobebuiltorsoldbyyouoronyour

behalfattherelevantSite;and

ii) ifaftersubmissionoftheSiteNotificationanyofthenotifiedparticularschange,youmustpromptlynotify

NHBCofthechanges.

e) Rules12)a)toc)applyifyouacquireahomeorSitewhichispartiallybuiltandinsuchcasesyoumustsubmitto

NHBCaSiteNotificationtogetherwithalocationplanforalloftheplannedhomesontheSitebeforeanyfurther

substantialbuildingworkiscarriedouttothehomeand/orSite.

f) EachSiteNotificationthatyouarerequiredtosubmitmustbereceivedbyNHBCfullycompletedatleast:

i) 8weeksbeforeworkstartsonaHazardousSiteorwherenon-conventionalorcomplexconstructionmethods

aretobeused;

ii) 28daysbeforeworkstartsinanyothercase.

g) FollowingreceiptofaSiteNotification,subjecttoRule12)f)i)NHBCwillsendyouaProductPlotSchedulewhich

mustbeusedunderStageTwo(Rule13)below.

h) Normally,aquotationforNHBC’schargesforNHBCCoverandotherserviceswillbeissuedtoyoubasedonthe

informationyouprovideinaSiteNotification.

i) NHBCmayacceptaSiteNotificationsubjecttoConditionsorNHBCmayrejectit.NHBCwillgiveyoureasonsin

writingifaSiteNotificationisacceptedsubjecttoConditionsorisrejected.NHBCmayinitsabsolutediscretion

giveorwithholditsauthorisationtoathirdpartyreferredtoinaSiteNotificationmadeunderRule12)c).

j) YoumaynotsubmitaSiteNotificationifNHBCinstructsyounottodoso.

Stage Two: Application for NHBC Cover

13)

a) Youmust:

i) atleast21daysbeforeworkstartsonaHome;or

ii) beforeyouenterintoaContractforaHome;

whicheveristheearlier,makeanApplicationforNHBCCoveraccompaniedbypaymenttoNHBCofthecharges

forNHBCCoverandanyotherservices(including,ifyouappointNHBCBuildingControlServicesLimitedasthe

ApprovedInspector(inEnglandandWales)oranNHBCCompanyasCertifier(inScotland)thechargesforthose

services)asadvisedtoyoubyNHBCforeachHomeforwhichyouhavesubmittedaSiteNotification.

b) NHBCmaycancelanApplicationforNHBCCoverandtheNHBCCoverforanyHomeif:

i) constructionisnotstartedwithinoneyearofthedateoftheApplicationforNHBCCover;

ii) inNHBC’sopinionNHBCwillnotbeabletoissueaNoticeofCoverwithintwoyearsofthedateofthe

ApplicationforNHBCCover;

iii) theHomeissoldtoathirdparty(notbeingthefirstOwner)otherthanacompanywithinyourgroup

ofcompanies.

c) NHBCmayacceptanApplicationforNHBCCoversubjecttoConditions,orwithoutConditionsorNHBCmayreject

it.NHBCwillgiveyoureasonsinwritingifanApplicationforNHBCCoverisacceptedsubjecttoConditionsoris

rejected.

d) YoumaynotsubmitanApplicationforNHBCCoverifNHBCinstructsyounottodoso.


Charges for NHBC Cover and services

14)

a) NHBCmayatitssolediscretionagreetoacceptaSiteNotificationand/oranApplicationforNHBCCoversubmitted

afterthedatesrequiredbyRules12)and13)inwhichcaseNHBCshallbeentitledto:

i) chargeinterestunderRule54)ontheapplicablechargesfortheperiodstartingonthelastdateuponwhich

thechargesshouldhavebeenpaidaccordingtoRule13)andendingwhentheyarepaid;and

ii) makeafurtherchargeforlatesubmission.

b) NHBCmayre-assessthechargesforNHBCCoverforaHomeatanytimeiftheactualsellingpriceoftheHomeis

higherthantheanticipatedsellingpriceuponwhichNHBCinitiallycalculatesthechargesforNHBCCover,andyou

mustpayNHBCthedifferencebetweenthechargesthatyouhavealreadypaid(orbecomeliabletopay)andthe

re-assessedchargesifNHBCasksyoutodoso.

c) NHBCmayre-assessthechargesforNHBCCoverforaHomeatanytimeifaftersubmissionofaSiteNotification

anyofthenotifiedparticularschange(whetherornotyounotifythechangestoNHBC)orarefoundtobe

incorrect,andyoumustpayNHBCthedifferencebetweenthechargesthatyouhavealreadypaid(orbecome

liabletopay)andthere-assessedchargesifNHBCasksyoutodoso.

d) ThechargespayablebyyouunderRules13)and14)willnotbewaived,returnedorrefundedunderany

circumstances(includingwhenNHBCCoverisnotprovidedoriscancelledforanyreason).

e) NHBCmaycancelanApplicationforNHBCCoverortheNHBCCoverforanyHome(andonbehalfofNHBCBuilding

ControlServicesLimitedanyInitialNoticeoronbehalfofanyNHBCCompanyanyCertificateofDesign)ifthe

paymentofanychargesthatyouarerequiredtopaytoNHBC,NHBCBuildingControlServicesLimitedorany

otherNHBCCompanyisnotmadeinfullandattheduetimeandinparticularwherearrangementsaremadefor

thepaymenttobemadebychequeordirectdebitifthechequeordirectdebitisdishonoured.

Testing and inspection

15)

a) NHBCmayinspectandcarryouttechnicalinvestigationsofanyHomeinamannerandatafrequencytobe

determinedbyNHBC.Forthepurposesofsuchinspectionsandinvestigations,youmustcarryoutanyworkor

teststhatNHBCmayrequireyoutocarryoutandprovideanyfacilities,documentsorinformationthatNHBC

mayrequireyoutoprovide.NHBC’sinspectionsandtechnicalinvestigationsareforthepurposeofenablingNHBC

todecidewhethertoprovideNHBCCoverforaHome.AnyinformationsharedwithyouarisingfromNHBC’s

inspectionsandtechnicalinvestigationsinnowayrelievesyouofyourobligationsunderRule10)a)todesignand

buildeachHomeinaccordancewiththeapplicableNHBCRequirements.

b) YoumustensurethatNHBCisnotifiedinadvanceattheappropriatestagesofconstructionofeachHome,to

enableNHBC’sinspectionsandtechnicalinvestigationstotakeplaceattheappropriatetime.Youmustalso

notifyNHBCassoonasyoubecomeawareofanyproblemconcerninganyHomethatcouldresultinitnotbeing

completedinaccordancewithNHBCRequirements.

c) IfNHBCBuildingControlServicesLimited(`NHBC-BCS’)isappointedbyyoutoactasthebuildingcontrolbody

foranyHome,wemaycarryoutinspectionsandtechnicalinvestigationsonbehalfofNHBC-BCS.However,these

serviceswillbeprovidedundertheseparateapplicabletermsandconditionsthatapplytothem(seeRule10)b)).


Hazardous Sites and Non-Conventional Methods of Construction

16)

a) IfaHomeistobebuiltonaHazardousSiteorwherenon-conventionaland/orcomplexconstructionmethodsare

tobeused:

i) youmust(withinthetimelimitsreferredtoinRule12)f)i))(8weeksbeforeworkstarts)submitwiththeSite

Notificationthedesigndetailsshowinghowthehazards,non-conventionalconstructionmethodsand/or

complexconstructionmethodsaretobedealtwithandinparticularyoumustshowtoNHBCindetail

(bysubmissionofdrawings,calculations,soilinvestigations,environmentalreportsandanyotherrelevant

information)howhazards,non-conventionalconstructionmethodsand/orcomplexconstructionmethods

aretobedealtwithsoastoenablethebuildingoftheHometobecompletedinaccordancewith

NHBCRequirements;

ii) youmustprovideNHBCwithanyinformationpertainingtotheHomeandtherelevantSitethatNHBCmay

reasonablyrequestfromtimetotime.

b) NHBCmaycancelanApplicationforNHBCCoverandtheNHBCCoverforanyHomeonthebasisofinformation

submittedornotsubmittedbyyouoronyourbehalfunderRule16)a)ifNHBCisnotsatisfiedthatbuildingofthe

HomewillbecompletedinaccordancewithNHBCRequirements.

Homes not registered with NHBC

Evidence of other warranty and insurance cover

17) Thisruleisnotapplicable.

Release from the Rules

18)

a) YoumaymakeawrittenapplicationtoNHBCtobereleasedfromyourobligationsunderRules9)to16)inclusivein

connectionwithaparticularhomeif:

i) thathomeistobedesignedorconstructedunderthesupervisionofanarchitectorbuildingsurveyor

appointedbythefirstownerofthehomeontermswhicharethesameasorsimilartothosecontainedinthe

appropriaterecommendationsoftheRIBAfortheappointmentofArchitects;or

ii) youhaveenteredintoorwillenterintoanagreementwiththefirstownerofthehomewhichlimits

(andwhichmakescleartothefirstownerthelimitsof)yourobligationsinrespectofthedesignor

constructionofthehome.

b) AsaConditionofgrantinganapplicationmadeunderRule18)a)NHBCmayrequirewrittenevidenceofthe

appointmentofthearchitectorqualifiedbuildingsurveyorand/orofthetermsofanyrelevantagreement.

c) IfanapplicationunderRule18)a)isgrantedyoumustinformthefirstownerofthehomeinwritingthattheHome

willnothavethebenefitofNHBCCover.

d) IfanapplicationunderRule18)a)isnotgrantedbyNHBCyoumustcontinuetocomplywithyourobligationsunder

theRulesinconnectionwiththerelevanthome.

NHBC Cover

Authority to offer NHBC Cover

19) BysubmittinganApplicationforNHBCCoverforaHomeyouirrevocablyauthoriseNHBCtooffertocommityouto

theBuilder’sobligationswhichformpartoftheNHBCCover(subjecttoitstermsandconditions)fortheHomeandto

commityoutothoseobligations.



Delivery of Documents

20)

a) AfterreceivinganApplicationforNHBCCoveraccompaniedbypaymentoftherelevantchargesNHBCwill

normally,foreachoftheHomesspecifiedintheApplicationforNHBCCover,either:

i) sendyouthedocuments(includinginstructionsforuse,offerofNHBCCover,acceptanceform,termsand

conditionsofNHBCCoverandanyconditionstowhichtheofferissubject)(‘NHBCOfferDocuments’)forthe

offerofNHBCCoverforeachsuchHome;or

ii) notifyyouinwriting(‘NHBCOfferNotification’)thattheNHBCOfferDocumentsfortheofferofNHBCCover

foreachsuchHomecanbeaccessedelectronicallythroughtheNHBCwebsite.

b) ForeachHomespecifiedineachApplicationforNHBCCoveryoumake,youmust,followingreceiptoftheNHBC

OfferDocumentssenttoyouasreferredtoinRule20)a)i)ortheNHBCOfferNotificationsenttoyouasreferred

toinRule20)a)ii),withoutdelay(andwherepossiblebeforethefirstOwnerentersintoaContractfortheHome),

delivertheNHBCOfferDocumentsortheNHBCOfferNotification(asapplicable)directlytothefirstOwner,or

directlytothefirstOwner’sconveyanceriftheyhaveappointedone,andnottoanyoneelseunless:

i) NHBCinstructsyounotto;

ii) theApplicationforNHBCCoverand/ortheNHBCCoverfortheHomereferredtointheNHBCOffer

DocumentsortheNHBCOfferNotificationiscancelledbyNHBCundertheRules(inparticularRule13)b),14)

e),16)b)or43)c));

iii) yourRegistrationissuspendedorcancelled(inwhichcaseRule43willapply);or

iv) theHomereferredtointheNHBCOfferDocumentsortheNHBCOfferNotificationhasbeen,isbeingoristo

beoccupiedasadwellingbeforebeingsold(inwhichcaseyoumustinformNHBCofthefactandperiodof

occupationoftheHomeasadwelling,howeverthiswillnotmakeyoutheOwnerandyouwillnotbeentitled

tomakeaclaimunderanyNHBCCoverfortheHome).

c) InanyofthecircumstancessetoutinRules20)b)i)to20)b)iii),youmustreturntoNHBCanyNHBCOffer

DocumentsandNHBCOfferNotificationssenttoyouunderRule20)a)thatarewithinyourpossessionandtake

anystepsthatNHBCmayreasonablyrequireinordertorecoverpossessionandreturntoNHBCanysuchNHBC

OfferDocumentsandNHBCOfferNotificationsthatarenotwithinyourpossession.

d) InthecircumstancessetoutinRule20)b)iv),youmustinformthefirstOwner,orthefirstOwner’sconveyancerif

theyhaveappointedone,ofthefactandperiodofoccupationoftheHomeasadwelling.

Separate charges for NHBC Cover

21) YoumustnotmakeachargetothefirstOwnerforanyNHBCCoverorNHBCserviceunlessthatchargeisincluded(at

cost)inthepricepayableundertheContractfortheHomeorNHBCgivesyouwrittenpermission.

Obligations under NHBC Cover

22) YoumustfulfilyourobligationsunderanyNHBCCovertowhichyouareaparty,infullandattheduetime.

Liability of Builders and Developers under NHBC Cover

23)

a) IfyousubmitaSiteNotificationandApplicationforNHBCCoveryouwillbeliabletotheOwneroftheHomeforthe

Builder’sobligationsundertheresultingNHBCCover.

b) IfyouareRegisteredasaBuilderandyouareinvolvedinthedesignand/orconstructionofaHomeforwhicha

DevelopersubmitstheSiteNotificationandApplicationforNHBCCover,theniftheDeveloperfailstofulfilthe

Builder’sobligationsundertheNHBCCoverandinconnectionwiththosemattersofdesignandconstructionin

whichyouwereinvolved:

i) youwillindemnifyNHBCondemandinrespectofanysumsthatNHBCisentitledtoclaimfromtheDeveloper

undertheRulesforthatHome;and

ii) atNHBC’srequestandyourexpense,youmustfulfiltheBuilder’sobligationsundertheNHBCCoverfor

thatHome.c) NothinginRule23)b)orinNHBC’sexerciseofitsrightsunderthatRuleinanywayrelievestheDeveloperofits

obligationsundertheRulesoranyNHBCCoverinrespectoftheHomeconcerned.

Notices of Cover

24)

a) FollowingitsinspectionsandanytechnicalinvestigationsofaHomeunderRule15)NHBCmayinitssolediscretion

(withoutbeingobligedtodoso)issueaNoticeofCoverinrespectoftheHome.

b) TheissueofaNoticeofCoverforaHomeisnotawarranty,representationorguaranteetoyou,theOwnerorany

otherpersonthatconstructionoftheHomewascompletedfullyinaccordancewithapplicableNHBCRequirements

anddoesnotinanywayrelieveyouofyourobligationsunderRule10)a)tocompletetheconstructionoftheHome

inaccordancewithapplicableNHBCRequirements.

c) NHBCmayinitssolediscretionagreeinwritingthatyouneednotcomplywithalloftheapplicableNHBC

RequirementsconcerningthedesignandconstructionofaparticularHome,inwhichcaseyoumustobtainthefirst

Owner’swrittenagreementtoacceptthatnon-compliance.Insuchcircumstances,NHBCmayinitssolediscretion

issueaNoticeofCoverinrespectoftheHomecontaininganendorsementexcludingtherelevantitemsfromcover.

Withholding a Notice of Cover

25) IfNHBCwithholdstheissueofaNoticeofCoverinrespectofaHome,itwillgiveyouwrittennoticeofitsreasonsfor

doingso.

Rights when a Notice of Cover is withheld26) IfyouconsiderthatNHBCisunreasonablywithholdingaNoticeofCover,youmaygiveNHBCwrittennoticethatyou

wantthatdisputetobereferredtoarbitrationunderRule55)bygivingwrittennoticetoNHBCwithin28daysofyourreceiptofawrittennoticefromNHBCunderRule25).

Claims and Work required by NHBC

Tests, investigations and work required by NHBC

27)

a)

i) NHBCmaygiveyounotice(suchnoticetobegivenbyemailand/orinwriting)oftestsand/orinvestigations

thatNHBCrequiresyoutocarryoutorhavecarriedoutinordertoinvestigateanysuspectednon-compliance

withNHBCRequirements.

ii) NHBCmaygiveyounotice(suchnoticetobegivenbyemailand/orinwriting)ofworkthatNHBCrequiresyou

tocarryoutorhavecarriedoutinordertoremedyanynon-compliancewithNHBCRequirements.

b) FollowingreceiptofanoticeunderRule27)a)youmust:

i) informNHBCinwritingwithinseven(7)daysofanydifficultiesthatmaypreventthecompletionofthe

tests,investigationsand/orworkspecifiedinthenoticebythedaterequiredandNHBCmay(initsabsolute

discretion)agreetovarythatdate;

ii) atyourownexpensecarryoutorhavecarriedoutthetestsand/orinvestigationsspecifiedinthenotice

andreporttheoutcomeorresultstoNHBCinwritingbythedatespecifiedinthenoticeorbyanylaterdate

agreedunderRule27)b)i)or,ifnodatewasspecifiedoragreed,withinareasonableperiodoftime;

iii) atyourownexpensecarryoutorhavecarriedoutanyworkspecifiedinthenotice(togetherwithany

additionalworknecessaryinconnectionwiththeworkspecifiedinthenotice)sothattheHomecomplieswith

theapplicableNHBCRequirementsbythedatespecifiedinthenoticeorbyanylaterdateagreedunderRule

27)b)i)or,ifnodatewasspecifiedoragreed,withinareasonableperiodoftime.

c) Ifyoudonotcompleteanytests,investigationsand/orworkthatyouarerequiredtocarryoutorhavecarriedout

underRules27)a)and27)b)withinthetimeallowed,NHBCmay(initsabsolutediscretion):

i) haveappropriatetests,investigationsand/orwork,carriedout;or

ii) assessthecostsofcarryingoutsuchtests,investigationsand/orworkandpaythatsumto

theOwner.


d) If,initsabsolutediscretion,NHBCdeemsitappropriatetodoso(forinstancebecauseof(i)thehistoryofany

dealingsbetweenyouandtheOwnerand/orNHBC(ii)NHBC’sassessmentofanyworkpreviouslycarriedoutby

you(iii)yourfinancialpositionor(iv)anemergency)NHBCmay,insteadoforinadditiontoservinganoticeunder

Rule27)a):

i) arrangeitselffortests,investigationsand/orworktobecarriedout;or

ii) assessthecostsofhavingsuchtests,investigationsand/orworkcarriedoutandpaythatsumtotheOwner.

e) NHBCmayservemorethanonenoticeunderRule27)a)inrespectofaHomeandwhereNHBCdoesso,anyearlier

noticeshallremaininforce,excepttotheextentthatanylaternoticeiseitherexpresslystatedtosupersedean

earliernoticeorthecontextrequirestoanyextentthatalaternoticesupersedesanearliernotice.

f) IfNHBCexercisesitsrightsunderRules27)c)ord)NHBCwillnotifyyou(suchnotificationtobegivenbyemailand/

orinwriting)andfollowingserviceofsuchanoticeyoumustnotundertakethetests,investigationsand/orwork

referredtointhenoticeyourself,norarrangeforanyotherpersontoundertakethem.

g) IfNHBCexercisesitsrightsunderRules27)c)ord)NHBCwillbeentitledtorequireyoutostopworkontheHome

concerned(asspecifiedinthenotice,alongwithparticularsoftheworkthatmustbestopped)andfollowing

serviceofthatnotice:

i) youmuststopworkontheHomeasrequiredunderthenotice;exceptthat

ii) youmusttakeallstepsnecessarytoensurethattheHomeissecureandwatertight.

h) Wheretests,investigationsand/orworkarerequiredtobecarriedouttoaHomeunderRule27)youmustat

yourexpense:

i) alloworobtainaccesstothepremisesreferredtointhenoticeforyou,NHBCand/oranycontractorsforthe

purposeofallowingtests,investigationsand/orworktobedone;

ii) arrangeforanydamagetotheHomeresultingfromthecarryingoutoftests,investigationsand/orworktobe

repairedandfortheaffectedpartsoftheHometobere-decoratedandleftinacleanandtidycondition;

iii) arrangefortheremovalandstorageoftheOwner’spossessions,and/orfortheprovisionofsuitable

alternativeaccommodationfortheOwnerand/oranyoneelsewhonormallylivesintheHomewiththe

Owner’spermission.

Alternatively,inthecaseofRules27)h)ii)and27)h)iii)NHBCmayeithermakeanyoftheabovetests,

investigations,workand/orarrangementsatyourexpenseor,initsabsolutediscretion,assessthecostofmaking

anyoftheabovetests,investigations,workand/orarrangementsandpaythatsumtotheOwner.

i) IfNHBCexercisesitsrightsunderRule27)youmustimmediatelyondemand(andwithoutdeductionorsetoff)

indemnifyNHBCinrespectofallcostsandexpensesincurredbyNHBCinconnectionwithdoingso.Suchcostsand

expensesmayincludeadministrationcosts,thecostofsettlementofclaimsunderNHBCCoverandthecostsand

disbursementsincurredinobtainingprofessionaladviceandassistance.

j) NHBCmayapplyRule27)atanytimeinconnectionwithanyHomeandanyobligationorliabilitythatyouhave

undertherelevantNHBCCoverand/ortheRulesandwhichyouhavenotdischargedinfullandattheduetime.

k) IfyoudisputeanyactiontakenbyNHBCunderRule27)thatdisputemaybereferredtoarbitrationsubjecttoand

inaccordancewithRule55).Ifadisputeisreferredtoarbitration:

i) NHBCshallcontinuetobeentitledtocarryoutormakeapaymentinrespectofanytests,investigationsand/

orworkspecifiedinanoticeservedunderRule27);and

ii) theArbitratorwillnothavethepowertoorderyoutocarryoutanytests,investigationsand/orwork.


Claims and Resolution

Investigation of claims and complaints by NHBC

28)

a) IfanOwnermakesanyclaimorcomplainttoNHBCinrespectofaHome,NHBCmayundertakeitsowntestsand/or

investigationsandmayrequirethatyouattendand/orassistNHBCwiththosetestsand/orinvestigations(whether

ornotyouareobligedtorespondtotheclaimorcomplaintundertheNHBCCoverfortheHome).

b) IfNHBCrequiresyoutoattendand/orassistunderRule28)a),NHBCwillnotifyyouinwriting(settingout

particularsoftheHomeandthedateandtimeoftheplannedtestsand/orinvestigations)andfollowingserviceof

thatnotice:

i) youmustatyourownexpensemakearepresentativeavailabletoattendand/orassistNHBCwiththosetests

and/orinvestigations;

ii) youmustalloworprocureaccesstotherelevantpremisesforNHBCanditscontractorsforthepurposeof

allowingNHBCoritscontractorstocarryoutthetestsand/orinvestigations.

c) Followingtestsand/orinvestigationscarriedoutunderRule28)a)NHBCwill:

i) notifyyouinwritingoftheoutcomeofthetestsand/orinvestigations;

ii) notifyyouofthecostsandexpensesincurredbyNHBCinconnectionwiththetestsand/orinvestigations.

Suchcostsandexpensesmayincludeadministrationcostsandthecostsanddisbursementsincurredin

obtainingprofessionaladviceandassistance.

d) FollowingreceiptofanoticeunderRule28)c)ii)youmustimmediatelypaytoNHBC(withoutdeductionorsetoff)

anamountequaltotheamountofthecostsstatedinthenotice,unless:

i) theoutcomeofallofthetestsand/orinvestigationsisthattherehasbeennofailurebyyoutocomplywith

yourobligationsundertherelevantNHBCCoverandRulesinconnectionwiththematterstestedand/or

investigated;or

ii) withNHBC’swrittenagreement(initsabsolutediscretion)withinareasonabletimeatyourownexpenseyou

carryoutalloftheworkthatNHBCwouldotherwisehavetopayfororcarryoutundertherelevantNHBC

Coverinconnectionwiththeclaimorcomplaint.

e) NHBCmayapplyRules28)a)to28)d)atanytimeinconnectionwithNHBC’sresponsetoanyclaimorcomplaint

madeinconnectionwithNHBCCoverforaHomebuiltorsoldbyyouoronyourbehalf.

Resolution Servicef) IfanOwnermakesaclaimorcomplainttoNHBCunderorinconnectionwithNHBCCoverandNHBCdecidesto

providetheResolutionServicethen:

i) Rules27)and28)willapplyinrespectofanytests,investigationsand/orworkwhichNHBCrequiresyouto

carryoutorarrangeand/orwhichNHBCcarriesoutorarranges;

ii) NHBCmaychargeyouafeeforprovidingtheResolutionService.

g) NHBCmayapplyRule28)f)atanytimeinconnectionwithNHBC’sresponsetoanyclaimorcomplaintmadein

connectionwithNHBCCoverforaHomebuiltorsoldbyyouoronyourbehalf.

Recovery of Costsh) InadditiontoNHBC’sotherrightsundertheRules,ifNHBCincursanycosts:

i) underanyNHBCCoverasaresultoforinconnectionwithyourfraud;

ii) underanyNHBCCoverasaresultoforinconnectionwithyourinsolvency;

iii) underanyNHBCCoverasaresultoforinconnectionwithanyArbitrationAward,CourtJudgmentorCourt

Orderwithwhichyoufailtocomply;

iv) underanyNHBCCoverasaresultoforinconnectionwithyourfailuretomeetyourobligationsunderthat

NHBCCover;

v) asaresultoforinconnectionwithyourfailuretomeetyourobligationsundertheRules;(ineachcase

whetherornotnoticeoftherelevantfactsormatterswasgivenbyanOwner)NHBCmaynotifyyouinwriting

ofthecostsincurred(includingadministrationcosts,thecostofsettlementofclaimsunderNHBCCover

andthecostsanddisbursementsincurredinobtainingprofessionaladviceandassistance)andyoumust

immediatelypaytoNHBC(withoutdeductionorsetoff)anamountequaltotheamountofthecostsstatedin

thenotice.


Settlement of Claimsi) NHBCmaysettleclaimsandcomplaintsmadeunderNHBCCoverbyanymethodthatNHBCinitsabsolute

discretionconsidersappropriate(includingbywayofmakingapaymenttotheOwner,arrangingfortests,

investigationsand/orworktobecarriedout,orarrangingtopurchasetherelevantHome)andyourliability

undertheseRuleswillbeunaffectedbythechoiceofmethod.

Common Partsj) IfaclaimismadeunderNHBCCoverbytwoormoreOwnersinconnectionwithanyCommonParts(theuseor

enjoymentofwhichissharedbythem)theninrespectofsuchCommonPartsNHBCmayproceedagainstyouas

ifalloftherelevantOwnerswhosharetheuseorenjoymentofthoseCommonPartsandwhoarealsoentitledto

claimunderNHBCCoverinconnectionwiththoseCommonParts,hadmadeclaimsundertheirNHBCCover.

Powers of NHBC

Bonds and Sureties29)

a) NHBCmayatyourrequestandinitsabsolutediscretionagreetoactassuretyinrespectofaBondinwhichcaseyoumustpayNHBC’schargesanddisbursementsforthatserviceasadvisedtoyoubyNHBCfromtimetotime.

b) NHBCmayimposeConditionsinconnectionwithitsagreementtoactassuretyinrespectofaBond,including

Conditionsrequiringyouto:

i) procureanagreementfrom(atNHBC’soption)anyofyourAssociates,anyparentcompany,anyofyour

directors,oranyofyourpartners,ontermssuchthattheyagreetoindemnifyNHBCagainstallcosts

(includinglegalcostsanddisbursements)thatmaybeincurredbyNHBCinconnectionwiththeBondifNHBC

becomesliableundertheBond(includinganyliabilitytomakeapaymentortoundertakeworks);

ii) depositwithNHBCasumnotexceedingthemaximumamountthatNHBCcouldbeliableforifNHBCbecomes

liableundertheBond(includinganyliabilitytomakeapaymentortoundertakeworks).

c) NHBCmayimposeConditionsunderRule29)b)asaConditionofitsagreementtoactassuretyinrespectofaBond.

d) NHBCmayimposeConditionsunderRule29)b)afterhavingagreedtoactassuretyinrespectofaBondifatany

timebeforeNHBC’sactualand/orcontingentliabilitiesundertheBondarereleasedorextinguished:

i) youareinbreachofanyofyourobligationsundertheBond;

ii) yourRegistrationissuspendedorcancelledunderRule30)orunderRule41);

iii) youaresubject(inthecaseofacompany)toachangeofControlor(inthecaseofpartnership)toa

change(byapartnerjoiningorleavingthepartnership)inthecompositionofthepartnershipordissolution

ofthepartnership.

e) AdepositmadeunderRule29)b)willbereturnedtoyouonceNHBC’sactualand/orcontingentliabilitiesunderthe

Bondhavebeenreleasedorextinguished,lessanysumthatyouareobligedtopaytoNHBCunderRule29)f)in

connectionwiththeBond.

f) YoumustreimbursetoNHBCondemand(withoutdeductionorsetoff)anycoststhatareincurredbyNHBCin

connectionwithaBondifNHBCbecameliableundertheBond(includinganyliabilitytomakeapaymentorto

undertakeworks)andthisobligationwillnotbedischargedbythemakingofadepositunderRule29)b).


Powers of NHBC on specified events30)

a) NHBCmaydecide:

i) toamendtheConditionsofyourRegistrationortoimposefurtherConditionsofyourRegistration;

ii) thatyoumustcomplywiththeRules,andanyConditionsofyourRegistrationand/oranyotherconditions

specifiedbyNHBC;

iii) thatyoumustpaycompensationtoanOwnerortoNHBC;

iv) tosuspendyourRegistrationwhilst:

a itinvestigatesand/ortakesactioninrespectofanyofthematterslistedinRule30)b);or

b areviewtakesplaceunderRule31);or

c anappealisheardunderRules32)to38);

v) tocancelyourRegistration;

vi) totakeanyotheractionitthinksfit.

b) NHBCmaymakeanyofthosedecisionsif:

i) youfailtocomplywithanyoftheRules;

ii) youfailtocomplywithaConditionofyourRegistration;

iii) youconductyourselfinamannerlikely(inNHBC’sopinion)tobringNHBCintodisrepute;

iv) youceasetradingorresolvetodoso;

v) youfailtodischargeyourdebtsinfullandattheduetime;

vi) theRegistrationofyourAssociatehasbeencancelled;

vii) youfailtopayyourannualsubscriptionunderRule6);

viii) youdonotanswerarecordeddeliveryletterfromNHBCwithin28daysofposting;

ix) anychequeorsimilardocumentissuedbyyouisdishonouredorpaymentisrefused;

x) NHBCatitssolediscretionconsidersitappropriatetodoso;

xi) youdonotcomplywiththetermsofanycodeofconductthatNHBCrequiresyoutocomplywith

underRule47).

c) DuringanyperiodinwhichyourRegistrationissuspendedorcancelled,youmustnot:

i) submittoNHBCanySiteNotificationorApplicationforNHBCCover;

ii) deliver,orundertaketodeliveranyNHBCOfferDocumentsorNHBCOfferNotificationsinrespectofany

HomewithoutNHBC’swrittenpermissiontodoso;

iii) indicatetoanypersonbyanymeansthatyouareRegisteredasaBuilderorDeveloper,unlessinthecaseof

suspensionyoualsoindicatethatyouarecurrentlysuspended.

d) NHBCwillgiveyouwrittennoticebeforemakingadecisionunderthisRule30).

Reviews and appeals

Right to review decisions of NHBC

31)

a) Ifyoureceive:

i) noticefromNHBCunderRule4)ofadecisiononyourapplicationforRegistration;or

ii) noticefromNHBCunderRule5)ofadecisiontoimposeadditionalConditionsortoamendyourConditionsof

Registration;or

iii) aninstructionfromNHBCunderRule12)nottosubmitaSiteNotification;or

iv) aninstructionfromNHBCunderRule13)nottosubmitanApplicationforNHBCCover;or

v) aninstructionfromNHBCunderRule20)nottodeliverNHBCOfferDocumentsorNHBCOfferNotifications;

or

vi) aninstructionfromNHBCunderRule27)g)tostopwork;or

vii) noticeunderRule30)d);

youhavetherightssetoutinRule31)b).


b) YouhavetherighttomakewrittenrepresentationsprovidedthatthoserepresentationsreachNHBCnomore

than21daysafteryoureceivetherelevantnoticeorinstruction.Iftheapplicablelaw(underRule58))isthelaw

ofScotland,youalsohavetherighttorequestandattendahearingandmakerepresentationsatthathearing.

c) Followingreceiptofrepresentationsand/orahearingunderRule31)b)NHBCwillgiveyouwrittennoticeof

itsdecision.

Appeals against a review decision (other than when the law of Scotland applies)

32)

a) YouhavearighttoappealagainstanydecisionnotifiedunderRule31)c).YoumustgiveNHBCwrittennoticeof

suchanappealwithin14daysafteryoureceivenoticeofthatdecision.

b) Atthesametimeasyougivenoticeofyourappealyoumustdeposit£500withNHBCassecurityforitsinitial

costsoftheappeal.

The Appeal Committee

33)

a) Youmayrequestthatthehearingofyourappealbeheldbeforeeither:

i) theChiefExecutiveofNHBC;or

ii) anAppealCommittee;

providedthattheChiefExecutivemaydeclinetohearyourappealinwhichcaseitwillbeheardbyan

AppealCommittee.

b) AnAppealCommitteewillconsistofanindependentChairmannominatedbytheCharteredInstituteofArbitrators

andeither:

i) twomembersnominatedbytheBoardofNHBC;or

ii) ifyourregisteredofficeorprincipalplaceofbusinessisinNorthernIreland,twomembersofNHBC’s

NorthernIrelandCommitteenominatedbyitsChairmanandwhohavenotbeeninvolvedinyourapplication

forRegistration.

c) WhenhearingyourappealtheChiefExecutiveortheAppealCommitteewillactasaprivatetribunalandnotas

anArbitrator.

Directions34)

a) TheChiefExecutiveortheAppealCommitteewillgivedirectionsfortheconductofanappealandmayrequire

youtoprovidesecurityforNHBC’scosts.Ifyoufailtocomplywiththosedirections,yourappealmaybedismissed

withoutahearing.

b) Adatewillbefixedforthehearingoftheappealatwhichyoumaycallevidenceandmakerepresentations.

c) Atleast28daysbeforethehearingdateyoumustdelivertoNHBCadetailedwrittenstatementofallthefactsand

mattersyouwishtohavetakenintoaccountatthathearing.Ifyoudonotdoso,thehearingmaybeadjournedor

yourappealmaybedismissedwithoutahearing.

The decision35)

a) TheChiefExecutiveortheAppealCommitteemaydecide:

i) toconfirm,varyorreverseadecisionmadeunderRule30);and

ii) tomakewhateverorderitconsidersappropriatewithregardtothedeterminationandpaymentofcosts

(takingintoaccountanypaymentmadeunderRules32)b)or34)a)).

b) TheChiefExecutiveorAppealCommitteewillsendyouwrittennoticeofthedecision.


Appeals in Scotland

Appeals against a review decision (when the law of Scotland applies)36) Iftheapplicablelaw(underRule58))isthelawofScotland,youhavearighttoappealagainstanydecisionnotified

underRule31)c)butRules36)to37)shallapplyinsteadofRules32)to35)andyoumustgiveNHBCwrittennoticeofyourappealwithin21daysafteryoureceivenoticeofthedecision.Youmustatthesametimedeposit£500(orsuchothersumastheAppealTribunalshallfromtimetotimedetermine)withtheAppealTribunalassecurityforitsinitialcostsoftheappeal.

37) TheChairmanoftheAppealTribunalwillbenominatedbythePresidentoftheLawSocietyofScotland.

Theothermemberswillbenominated:

a) onebythePresidentoftheScottishBuildingEmployersFederation;and

b) onejointlybythePresidentoftheRoyalInstituteofBritishArchitectsandthePresidentorVicePresidentofthe

RoyalInstitutionofCharteredSurveyors.

38)

a) TheAppealTribunal:

i) willgivedirectionsfortheconductoftheappealandshallcommencethehearingoftheappealwithina

periodofnotmorethanthreemonthsfromthedateofitsreceiptofNHBC’sapplicationtotheChairmanto

convenetheTribunal;

ii) mayconfirm,varyorreverseNHBC’sdecision;

iii) may,ifitissatisfiedthatanyfailuretogivenoticeofappealwithinthetimeallowedbytheRulesarosefrom

somesoundandsubstantialreason,extendthetimeinwhichnoticemaybegiven;

iv) maymakeanyorder,includinganyorderconcerningthedeterminationandpaymentofcosts,takinginto

accountanypaymentmadeunderRule36),thatitthinksfit;

v) willgiveyouwrittennoticeofitsdecision.

Effect of instructions etc.

Effect of instructions and decisions etc.39)

a) Unlessotherwisestatedanynotice,communication,decision,instructionorrequirementofNHBCtakeseffect:

i) ifsentbyFirstClassPostorrecordeddeliverytotheappropriateaddresswillbetreatedashavingbeen

receivednotlaterthanthesecondworkingdayafterpostingandifsentbysecondclass,thethirdworkingday

afterposting;

ii) ifsentbyemailwillbetreatedashavingbeenreceivedatthetimeoftransmission

andcontinuesinforceunlessanduntilitissatisfied,withdrawnorsupersededbyanysubsequentdecision,instruction

orrequirementofNHBC.

b) AnydecisionofNHBCunderRules30)or31)takeeffect21daysafteryoureceivewrittennoticeofitandwill

remaininforceunlessanduntilanycontraryorderordecisionismadebyanAppealCommittee,AppealTribunal

ortheChiefExecutiveunderRules32)to38).

c) AnorderordecisionoftheAppealCommittee,AppealTribunalorChiefExecutivetakeseffectimmediatelyitis

notifiedtoyouinwriting.

40)

a) Youmustcomplywithanyinstruction,requirement,decisionororderofNHBCortheAppealCommittee,Appeal

TribunalorChiefExecutive(asthecasemaybe)whichhastakeneffect.

b) NHBCmaypublishormakepubliccommentaboutanydecisionorinstructionthatismadeorgivenunderorin

connectionwiththeRules;itmaydosoevenifanappealagainstthatdecisionorinstructionispending.


Cancellation of Registration

Voluntary and automatic cancellation of Registration41)

a) NHBCwillcancelyourRegistrationonyourwrittenrequestunless,priortoreceiptofyourrequest,either:

i) NHBChasgivenyounoticeunderRule30)inrespectofoneormoreofthematterssetoutbelow;or

ii) NHBCwasconsideringgivingyounoticeunderRule30)inrespectofanysuchmatter(s)anddoessowithin14

daysofreceivingyourwrittenrequest.

b) NHBCmayonlyrefuseyourrequestifithasgivenyounoticeunderRule30)(orisconsideringgivingyousuch

notice)inrespectofadecisionrelatingtooneofthefollowingmatters:

i) Rule30)b)i)butonlywherethisrelatestoafailurebyyoutocomplywithRules10),15),22),23),27),28)or29);

ii) Rule30)b)v);or

iii) Rule30)b)ix).

c) NHBCwillhavetherighttocontinuetorefusetoacceptyourrequestforcancellationofyourRegistrationuntil

anyactionunderRule30),reviewunderRule31)orAppealunderRules32)to38)isconcludedorwithdrawn.The

resultoftheaction,revieworappealwilltakeprecedenceoveryourrequest.

d) YourRegistrationwillbecancelledautomaticallyif:

i) abankruptcyorderismadeagainstyou;

ii) youareacompanyandgointoliquidationoraredissolved(otherthanforthepurposesofsolvent

reconstruction);

iii) anadministrator,areceiveroranadministrativereceiverisappointedtoyourbusiness;

iv) amortgageeorheritablecreditorsells,orappointsareceiverover,anyofyourland(whetherornotyouhave

madeaSiteNotificationinrespectofthatland);

v) youenterintoaVoluntaryArrangementwithyourcreditors.

e) ThedateofcancellationofyourRegistrationwillbethedateoftherelevantorder,appointmentorarrangement.

No indication of Registration after cancellation42)

a) IfyourRegistrationiscancelled,subjecttoRule43),youmust:

i) immediatelyceasetousetheNHBClogoandotherNHBCtrademarksandimmediatelyceasetouseand

wherenecessary(inordertoceasetouse)remove,obliterateordestroyanysigns,notices,literatureorother

materialtheuseofwhichmayrepresenttoothersorleadotherstoinferthatyouareRegistered;

ii) immediatelyreturntoNHBCallNHBCOfferDocumentsandNHBCOfferNotificationsandNHBCpromotional

materialwithinyourpossessionorcontrol.

After cancellation of Registration43)

a) SubjecttoRule43)b),afterthecancellationofyourRegistrationyoumustimmediatelyreturnorarrangeforthe

returntoNHBCofallNHBCOfferDocumentsandNHBCOfferNotificationsinrespectofwhichyoumadethe

ApplicationforNHBCCoverandwhichhavenot(priortocancellation)beendeliveredtotherelevantfirstOwner.

b) Youmaywithin28daysofthecancellationofyourRegistrationapplytoNHBCforconsenttodeliverNHBCOffer

DocumentsandNHBCOfferNotifications(inrespectofwhichyoumadetheApplicationforNHBCCover)tothe

relevantfirstOwnerandpendingNHBC’sdecisionyoumayretain(butnotdeliverunlesspermittedunderRule43)

d))thoseNHBCOfferDocumentsandNHBCOfferNotifications.

c) Ifyoudonotwithin28daysofthecancellationofyourRegistrationapplytoNHBCforconsenttodeliverNHBC

OfferDocumentsandNHBCOfferNotifications(inrespectofwhichyoumadetheApplicationforNHBCCover)to

therelevantfirstOwner,oryouapplyandNHBCrefusesyoupermissiontodeliverthem,thenNHBCmaycancelthe

relevantApplicationforNHBCCover.


d) IfyourRegistrationiscancelledatyourownrequestNHBCwillnormallyconsenttoyoudeliveringNHBCOffer

DocumentsandNHBCOfferNotificationsprovided:

i) youcansatisfyNHBCthatyouintendtocontinueinbusinessasaBuilderorDeveloperandwillbeableto

complywithyourobligationsinrespectoftheHomeundertheRulesandundertheNHBCCover;and

ii) youprovideNHBCwithsecurityinaformsatisfactorytoNHBCforthedischargeofthoseobligationsinsuch

formasNHBCreasonablyrequires.InthisconnectionyoumustproducetoNHBCanyevidencewhichitmay

reasonablyrequestincluding(butnotlimitedto)yourauditedaccounts,statementsfromyouraccountants

andbankersandtradeandotherreferences.

e) IfyourRegistrationiscancelledotherwisethanatyourownrequest,NHBCwillhaveabsolutediscretionasto

whetherornottograntyourapplicationforconsenttodeliverNHBCOfferDocumentsandNHBCOfferNotifications.

f) EvenafteryourRegistrationiscancelled:

i) youmustcontinuetocomplywiththeseRulesinrespectofanyHomebuiltorsoldbyyouoronyourbehalf;

ii) youmustdischargeanyactualorcontingentliabilitywhichyouhaveincurredtoanOwnerortoNHBC;and

iii) youmustpaytoNHBCanysumpayableundertheseRuleswhetheritbecameorbecomesduebeforeor

aftercancellation.

Release from continuing obligations44) IfyourRegistrationiscancelled,youmayaskNHBCtoreleaseyoufromanyofyourcontinuingobligationsunderthe

RulesortoundertakeanyofyourobligationsunderorinconnectionwithanyNHBCCover.IfNHBCispreparedtograntthatreleaseortoundertakethoseobligationsitwillnotifyyouoftheamountofanypaymentitrequiresinexchange.Youmaythenacceptorrejectthatoffer.Ifyouacceptorrejectthatoffer,NHBCwillnotbeliableinrespectofanymatterthathasalreadybeennotifiedtoyouortoNHBC.

45) IfyourRegistrationiscancelledandyouceasetocarryonbusinessasaBuilderorDeveloper(eitherbeforeoraftercancellation)NHBCmayrequireyoutomakeapaymenttoitinexchangeforitsundertakingsomeorallofyourobligationsunderanyNHBCCoverand/ortheRules.IfNHBCexercisesitsrightsunderthisRule45)NHBCwillnotifyyouinwritingoftheamountpayableandyoumustimmediatelypaythatamounttoNHBC(withoutdeductionorsetoff).

Reinstatement of Registration

Application for reinstatement of Registration – Procedure and Conditions 46)

a) IfyouhavepreviouslybeenRegisteredwithNHBCyoumayatanytimeapplytohaveyourRegistrationreinstated.

Youmustmakethatapplicationinwriting.NHBCwillgiveyouwrittennoticeofitsdecisiononyourapplication.

b) IfyourRegistrationwascancelledatyourownrequestNHBCwillreinstateyourRegistrationontermswhichareno

lessfavourablethantheywouldhavebeenifyourRegistrationhadnotbeencancelledunless:

i) NHBCwouldhavebeenentitledtomakeyourRegistrationsubjecttoneworvariedConditionsunderRule5)

ortotakeactionunderRule30);

ii) youfailtocomplywithanyrequestbyNHBCtoprovide,ortoauthoriseanythirdpartytoprovideany

informationand/ordocumentsrequestedbyNHBC;or

iii) informationcomestotheattentionofNHBCwhichindicatesthatanychargespayablebyyouunderRule14)

shouldbehigherthantheywouldhavebeenifyourRegistrationhadnotbeencancelled.

Inthosecircumstances,NHBCwillnotbeobligedtoreinstateyourregistrationbutifitdoessoitmaymakeyour

registrationsubjecttoappropriateConditions.

c) IfyourRegistrationisreinstatedyoumustpay:

i) NHBC’sreasonableadministrativeexpensesinconnectionwithyourapplication;

ii) theannualsubscriptionunderRule6)a)forthewholeoftheyearinwhichyouarereinstated;and

iii) allotheramountsduefromyoutoNHBCortoanOwnerunderorinconnectionwiththeseRulesand/orany

earlierNHBCRulesforBuildersandDevelopersRegisteredwithNHBCorunderorinconnectionwithorin

respectofanyNHBCCover.


d) IfyourRegistrationwascancelledotherwisethanatyourownrequestorNHBCrefusestoreinstateyour

RegistrationunderRule46)b)NHBCmay:

i) acceptyourapplicationeitherunconditionallyorsubjecttoappropriateConditions;

ii) deferconsiderationofyourapplicationpendingfurtherinquiriesortheprovisionoffurtherinformation;

iii) requireyoutomakeafreshapplicationforRegistrationasifyouhadnotpreviouslybeenRegistered;

iv) rejectyourapplication.

Consumer Code for Home Builders

Consumer Code for Home Builders47)

YoumustcomplywiththerequirementsoftheConsumerCodeforHomeBuilders,inrespectofeachHomereferred

toinaSiteNotificationorApplicationforNHBCCoveryousubmittoNHBC.

Obligations under these and earlier Rules

Effect of earlier rules48) InadditiontoyourobligationsundertheseRulesyouwillcontinuetocomplywithandbeboundbyanyearlierNHBC

RulesforBuildersandDevelopersRegisteredwithNHBCinrespectofwhichanyobligationorrequirementhasarisenonorbeforetheEffectiveDatefortheseRules.AnydisputeaboutthatobligationorrequirementwillbesubjecttotheseRules.

49) YoumustnotdenyliabilityunderorinconnectionwithanyNHBCCoveronthegroundsthat:

a) NHBCwasnotauthorisedtoofferthatNHBCCoveronyourbehalf;or

b) successiveOwners(includinganymortgageeorheritablecreditorinpossession)arenotapartytotheNHBCCover.

Communications and information

Address for communications50)

a) NHBCwill,atitsoption,sendallcommunicationsundertheRulesbyelectronicmeans(whichmayincludeemail)

ortoyouraddressasitappearsontheRegister.

b) YoumustsendanyreplytoacommunicationfromNHBCtotheaddressgivenonthecommunication.

Information to be supplied to NHBC51)

a) YoumustgiveNHBCwrittennoticeofanyproposedchangeofaddressoremailaddressbeforethatchangetakes

effect.NHBCwillbeentitledtorelyonanycommunicationasifitweredeliveredinaccordancewithRule39)a

regardlessofitsreturn,destructionoronwardtransmission.

b) YoumustimmediatelygiveNHBCwrittennoticeif:

i) youareasoletraderorapartnershipandanyoneacquiresafinancialinterestinyourbusinessthenyoumust

givedetailsoftheacquisition,theinterestacquired,andthename,emailaddressandaddressofthepersonor

organisationwhichhasacquiredtheinterest;

ii) youareapartnership,andthereisanychange(forexampleduetodeath,retirementoranewpartnerjoining)

inthecompositionofthepartnershipthenyoumustgivedetailsofthechange,andthename,emailaddress

andaddressofanynewpartner;

iii) youareacompany,andthereisanychangeinthemembershipoftheboardofdirectorsthenyoumustgive

detailsofthechange,andthename,emailaddressandaddressofanynewdirector;

iv) youareacompany,andanyonebecomestheregisteredorbeneficialownerofmorethan10%ofthe

company’ssharesthenyoumustgivedetailsofthename,emailaddressandaddressofthenewowner(s)of

theshares;

v) youbecomeunabletomeetyourdebtsastheyfalldue;


vi) youintendordecidetoceasetrading,topetitionforyourownbankruptcy,togointomembers’orcreditors’

voluntaryliquidation,toapplyfortheappointmentofanadministrator,toenterintoaVoluntaryArrangement

ortomakeanyarrangementorcompositionwithyourcreditors;

vii) youceasetrading,becomebankrupt,gointoliquidation,enterintoaVoluntaryArrangementormakean

arrangementorcompositionwithyourcreditors;

viii) anadministrator,areceiveroranadministrativereceiverisappointedinrelationtoyourbusiness;

ix) amortgageeorheritablecreditorsells,orappointsareceiverover,anyofyourland(whetherthesubjectofa

SiteNotificationornot);

x) youdisposeoforproposetodisposeofanylandinrespectofwhichNHBChasenteredintoaBond(orany

othersuretyindemnityorguaranteeinfavourofathirdpartyrelatingtocompletionofanyworksbyyouor

onyourbehalf).

c) OnorassoonasisreasonablypracticablefollowingthedateoftheReservationStage,youshallprovidetoNHBC

theOwnerData.

d) AtanytimeaftertheReservationStage,youagree,onanongoingbasis,toprovidetoNHBC:

i) anychangestothedatesforexchangeofcontractsandlegalcompletionoftheHome(s);

ii) anupdateastowhetherornotthepurchaseoftheHome(s)willnotproceedtolegalcompletion(forwhatever

reason);and/or

iii) anymaterialchangestotheOwnerData.

e) YouacknowledgeandagreethatyouareprovidingtheOwnerDatatoNHBCtoensureeachparty’scompliance

withallapplicablelaws,statutes,regulationsfromtimetotimeinforce.

f) NotwithstandingtheprovisionscontainedinRules51)c)and51)d),youmustimmediatelyuponrequestgivewritten

noticetoNHBCofthenameandaddressoftheFirstOwnerofanyHomebuiltortobebuiltorsoldbyyouoron

yourbehalf.

52)

a) IfrequiredbyNHBCyoumust:

i) producetoNHBCanypublishedorunpublishedaccounts,cashflowforecasts,bankreports,buildingand

developmentprogrammesandanyotherdocumentswhichNHBCmayreasonablyrequiretoenableitto

determineyourcontinuingabilitytocomplywiththeRulesand/ortomeetyourobligationsunderany

NHBCCover;

ii) supplyparticularsofanyclaimsmadetoyouortoanythirdpartyinrespectofaHomebuiltorsoldbyyou

whetherornotthatHomewasbuiltorsoldwiththebenefitofNHBCCover;

iii) authoriseanythirdpartytodisclosetoNHBCfulldetailsofanysuchclaims.

b) NHBCwilltreatasconfidentialanyinformationanddocumentssuppliedtoitbyyouoronyourbehalfin

connectionwithyourRegistrationandinconnectionwithanyclaiminrespectofaHomewhichissubjectto

NHBCCoverwhichyouhaveputinplaceandanyinformationprovidedbyyouunderRule52)a):exceptfor

i) anyinformationand/ordocumentsthatbecomepubliclyavailable,otherthanasaresultofthebreachby

NHBCofthisRule52)b);

ii) anyinformationand/ordocumentsthatNHBChascreatedorreceived(fromanysource)thedisclosureof

which,inNHBC’sopinion,isrequiredbyanylaw(includinganyorderofaCourtofcompetentjurisdiction),any

parliamentaryobligation,ortherulesofanystockexchangeorgovernmentalorregulatoryauthorityhaving

theforceoflaw;whichNHBCmaydisclosetotheappropriatepersonortheirauthorisedrepresentatives.

c) WithoutprejudicetoRule52)b)youacknowledgeandagreethatNHBCandanyNHBCCompanymayutilise

anyinformationanddocumentsprovidedbyyouoronyourbehalfinconnectionwithanySiteNotificationin

accordancewithRule12,anyApplicationforNHBCCoverinaccordancewithRule13ortheappointmentof

NHBCBuildingControlServicesLimitedastheApprovedInspectorinaccordancewithRule10)b):

i) toproduce(withoutlimitation)reportsandanalysiswhichareforthepurposesof,orancillaryto,the

NHBC’sstatedaimofraisingstandardsofconstructionacrossthebuildingindustry;and

ii) foranylegitimatebusinesspurposeofNHBCoranyNHBCCompanyandthatsuchlegitimatebusiness

purposesmayinclude(withoutlimitation)makingsuchinformationavailabletothirdpartiesona

commercialbasis.


53) IfNHBCBuildingControlServicesLimitedisactingasanApprovedInspectorundertheBuildingAct1984in

respectofanyHomebuiltorsoldbyyouoronyourbehalfyoumustinformNHBCassoonasthatHomeissoldor

occupiedbyanypersonasaresidence.

Contractual Matters

Sums payable54)

a) AnyamountpayablebyyoutoNHBCortoanOwnerunderorinconnectionwiththeRulesmustbepaidbyyouto

NHBCondemandwithinterestpayablefromthedateofNHBC’sdemandat5%abovetheBankofEnglandbase

rateofinterestfromtimetotime,withinterestaccruingonadailybasis.b) NHBCmaywithoutnoticetoyoucombine,consolidateormergealloranyofyourliabilitiestoNHBCandmay

setoffortransferanysumsfromtimetotimeowedtoyoubyNHBCinortowardsthesatisfactionofanyofthoseliabilities.

c) WhereValueAddedTax,InsurancePremiumTaxoranyothersales,use,propertyorothertransactionaltaxorlevyispayableinconnectionwithanypaymentdueundertheRulesyoushallalsopaysuchValueAddedTax,InsurancePremiumTaxandothertaxorlevyattherateandinthemannerfromtimetotimerequiredbytheproperauthorities.

Disputes under Rules 26 and 27

55)a) IntheeventofadisputeunderRules26)or27)youmayapplytotheCharteredInstituteofArbitratorsinLondon

(‘CharteredInstitute’)fortheappointmentofanArbitrator.b) IfyouwishtoapplyforanArbitratortobeappointed,youmustfirstnotifyNHBCinwritingandthenNHBCwill

arrangefortheCharteredInstitutetoprovideyouwithanapplicationform.Within21daysofreceivingtheapplicationformfromtheCharteredInstituteyoumustcompleteandreturntheform(togetherwithanychargespecifiedinit)totheCharteredInstituteandprovideacopytoNHBC.

c) NHBCshallbeentitledtoproceedasifnodisputehasariseninrespectofanymatterwhichyouareentitledtorefertoArbitrationunderthisRule55)untilsuchtimeasthematterisreferredtoArbitrationunderthisRule55)bythereturnofthecompletedapplicationforminaccordancewithRule55)b).

d) IfyoufailtocompleteandreturnanapplicationformtotheCharteredInstitutewithin21daysofreceivingit: i) yourapplicationfortheappointmentofanArbitratorshallberegardedasabandoned;and

ii) NHBCshallbeentitledtoproceedasifnodisputehadarisen.

Legal proceedings involving an Owner

56)a) IfatanytimearbitrationorlegalproceedingsarecommencedbetweenyouandanOwnerinrespectofaHomein

relationtowhichanyNHBCCoverisinforce:

i) youmustnotifyNHBCinwritingandthereafterprovideNHBCwithallinformationanddocumentsthatNHBC

reasonablyrequestsinconnectionwiththoseproceedings;

ii) youmust,ifNHBCrequests,makeanyreasonableapplicationandtakeanyreasonablestepsspecifiedby

NHBCtoenableittotakepartinthoseproceedings.NHBCwillreimburseyouforyourreasonablecostsofthat

applicationorstep.b) IfadisputearisesbetweenyouandanOwneroutofyourobligationsunderNHBCCoverandtheOwnerwishes

tohavethatdisputedeterminedbyarbitrationyoumustgiveyourwrittenconsenttotheappointmentofanArbitratorinwhateverformisrequiredandassoonasyouarenotifiedofthatrequirement.YoumustpayanyfeerequiredbytheArbitratorortheappointingbodyassoonasitisrequested.

Changes to the Rules

57)a) NHBCmayamendtheRulesaftergivingnoticetoyou,includingacopyoftheamendedRules.b) AmendedRuleswilltakeeffectfromthecommencementdatereferredtointheamendedRulesandyouwillbe

boundbyandmustcomplywiththoseamendmentsfromthatdate.


General contract provisions

58)a) Ifyourregisteredofficeaddress(orifnotacompanyorlimitedpartnership,yourprincipalplaceofbusiness)isin

England,Wales,ScotlandorNorthernIreland,theRulesshallbegovernedbyandconstruedinaccordancewiththelawsapplicableinthecountryinwhichyourregisteredofficeorprincipalplaceofbusinessissituated.

b) Ifyourregisteredofficeaddress(orifnotacompanyorlimitedpartnership,yourprincipalplaceofbusiness)isnotinEngland,Wales,ScotlandorNorthernIreland,theRulesshallbegovernedbyandconstruedinaccordancewiththelawsapplicableinEngland.

c) YourobligationsundertheRules(asvariedbyanyConditions)mayonlybevariedorwaivedwiththewritten

consentofNHBC.

d) ThefailureordelaybyNHBCatanytimetoenforceitsrightsundertheRules(asvariedorsupplementedbyany

Conditions)shallnotbeconstruedasawaiverofsuchrightsandshallnotaffecttheirvalidityortherightofNHBC

toenforcetheRules(asvariedorsupplementedbyanyConditions).

e) TheRules(asvariedorsupplementedbyanyConditions)areintendedtobeforthesolebenefitofyouandNHBC

andeveniftheyrefertothirdpartiestheyarenotintendedtoconferbenefitsuponsuchthirdpartieswhichare

enforceablebythem,exceptwheretheRulesrefertoanyNHBCCompany,inwhichcasethereferenceismadewith

theintentionofcreatingrightsenforceablebytheNHBCCompanyreferredto.

f) IfanyoftheRules(asvariedorsupplementedbyanyConditions)isforanyreasonheldtobeillegal,invalid,

ineffective,inoperableorotherwiseunenforceable,itshallbeseveredanddeemedtobedeletedandthevalidityand

enforceabilityoftheremainderoftheRules(asvariedbyanyConditions)shallnotbeaffectedorimpairedthereby.



Terms and conditions of NHBC Building Control Services Limited for the provision of the services of an ‘Approved Inspector’ under the Building Act 1984, in England or Wales.

Part 1 - Introduction1. Parts1-3containthetermsandconditionsapplicablewhenNHBCBuildingControlServicesLimited(‘NHBC’)provides

theservicesofan‘ApprovedInspector’undertheBuildingAct1984,inEnglandorWales.

2. NationalHouse-BuildingCouncilisacompanylimitedbyguaranteeandregisteredinEnglandandWalesnumber320784. TheregisteredofficeisNHBCHouse,DavyAvenue,Knowlhill,MiltonKeynes,BuckinghamshireMK58FP.

3. NHBCisawhollyownedsubsidiaryoftheNationalHouse-BuildingCouncil.

4. NHBCislicensedbytheConstructionIndustryCounciltoactasanApprovedInspectorinEnglandandWales.

5. ThetermsandconditionssetoutinthisdocumentapplytoeachInitialNoticeservedbyNHBConorafter1stJanuary2011.Ineachcasewhen,attherequestofaClient,NHBCservesanInitialNotice,thatshallbringintoforcewitheffectfromthedateoftheInitialNoticeaseparatecontractbetweenNHBCandtheClientfortheprovisionbyNHBCoftheservicesofanApprovedInspectorfortheBuildingWorktowhichtheInitialNoticerefers(‘Contract’)andthatContractshallbeonthetermsandconditionssetoutinthisdocument.

6. IftheClientisregisteredwiththeNationalHouse-BuildingCouncilasbuilderordeveloper,thetermsandconditionssetoutinthisdocumentshallnotaffecttheClient’sobligationsundertheNHBCRulesforBuildersandDevelopersRegisteredwithNHBC,norunderanynewhomewarrantypoliciesapplicabletohomesbuiltorsoldbytheClient.

7. Throughoutthisdocument,certaincapitalisedwordsandexpressionsareused.TheyhavethemeaningssetoutinPart3ofthisdocument.

8. Anyreferenceinthisdocumenttoanystatuteorstatutoryprovisionshallbeconstruedasincludingareferencetothatstatuteorstatutoryprovisionasfromtimetotimeamended,modified,extendedorre-enactedwhetherbeforeorafterthedateanyContractcomesintoforceandtoallstatutoryinstruments,ordersandregulationsforthetimebeingmadepursuanttoitorderivingvalidityfromitand(sofarasmaybeapplicable)anypaststatutoryprovisions(asfromtimetotimeamended,modified,extendedorre-enacted)whichsuchprovisionhasdirectlyorindirectlyreplaced.

9. Exceptinsofarasthecontextotherwiserequires,wordsdenotingthesingularshallincludethepluralandviceversa,wordsdenotinganyonegendershallincludeallgenders,andwordsdenotingpersonsshallincludebodiescorporate,unincorporatedassociations,partnershipsandindividuals.

10. Headingstoclausesareincludedforeaseofreferenceonlyandshallhavenoeffectontheinterpretationorconstructionofthisdocument.

Appendix - Terms and conditions of NHBC Building Control Services Limited

Part 2 - Applicable Terms and Conditions

1. Provision of servicesAppointment

1.1 FollowingtheserviceofanInitialNoticebyNHBCattherequestofaClient,NHBCshallprovidetheServicesforthe

relevantBuildingWork,subjecttothetermsandconditionssetoutinthisdocument.

1.2 NHBCshallprovidetheServiceswithreasonableskill,careanddiligenceinaccordancewiththeBuildingAct1984

PartIIandregulationsmadethereunder(includingtheBuilding(ApprovedInspectorsetc.)Regulations2010,as

amended)andwithdueregardtotheConstructionIndustryCouncil’sCodeofConductforApprovedInspectors

(asamended,modified,extendedorre-issuedfromtimetotime).

1.3 NHBCshallprepareandprovidetotheClientanInspectionNotificationFrameworkdocument,thatsetsoutin

outlinehowandwhenNHBCproposestoprovidetheServices;providedthatinappropriatecasesNHBCmay

useagenericInspectionNotificationFrameworkdocumentpreparedfortheClientgenerallyandnotspecifically

preparedorprovidedinrespectofanyparticularBuildingWork.

1.4 WhenpreparingtheInspectionNotificationFrameworkdocumentandthereafterwhenprovidingtheServices

NHBCshallusereasonableendeavourstopaydueregardtothescheduledprogrammeofworksfortheBuilding

Work,asadvisedtoNHBCbytheClientfromtimetotime.

1.5 NHBCshallgiveaFinalCertificatetotheLocalAuthorityforeachpartoftheBuildingWorkforwhichNHBCis

satisfied(havingregardtoitsdutiesasreferredtoinclause1.1)thatitisappropriateforittodoso.

1.6 NHBCmayatanytimebynoticeinwritinginformtheClientthatinrespectofthewholeoranypartofanyBuilding

WorkNHBCisnotsatisfied(havingregardtoitsdutiesasreferredtoinclauses1.1and1.2)thatitisappropriatefor

ittoissueaFinalCertificate(inwhichcaseclause6.3shallapply).

Clientinformationandassistance

1.7 TheClientshallpromptlyprovidesuchinformationandassistanceasNHBCreasonablyrequiresfromtimetotime

inordertofacilitatethetimelyprovisionoftheServices,includingandwithouttheneedforNHBCtorequest

thesame:

1.7.1 thedesigndocumentsfortheBuildingWork,asrelevanttomatterspertainingtocompliancewiththeBuilding

Regulations;

1.7.2 thescheduledprogrammeofworksfortheBuildingWork;

ineachcasepromptlyprovidinganymodifiedorre-issuedversionsoftheinformationordocumentsifanyare

createdfromtimetotime.

1.8 TheClientshall(havingdueregardtothescheduledprogrammeofworksfortheBuildingWorkandtheInspection

NotificationFrameworkdocument)informNHBCassoonasreasonablypossibleinadvanceandinanyeventnot

lessthanoneclearworkingdayinadvancewheninspectionvisitsarerequiredfortheBuildingWork.

Design,permitsandapprovals

1.9 NHBCherebyinformstheClientthatNHBCisnotresponsibleforthedesign,specificationormanagementof

constructionworkfortheBuildingWorkandtheServicesdonotincludetheprovisionbyNHBCofadviceonor

managementofanyaspectoftheconstructionworkfortheBuildingWork.

1.10 NHBCherebyinformstheClientthatNHBCisnotresponsibleforobtainingand/orimplementingand/orproviding

anypermits,licencesorapprovalsrequiredinconnectionwiththeBuildingWork,exceptforthosethatNHBCis

obligedtoobtain,implementand/orprovideinitscapacityasApprovedInspector.

CompliancewithBuildingRegulations

1.11 NHBCherebyinformstheClientthattheClientisentirelyresponsibleforensuringthattheBuildingWorkmeets

therequirementsoftheBuildingAct1984andtheBuildingRegulationsandtheClientacknowledgesthatthe

ServicesdonotincludeNHBCadvisingtheClientonhowtomeetthoserequirements.

1.12 NHBCherebyinformstheClientthattheissueofaFinalCertificateisnotarepresentation,warrantyorcertificate

thateachandeveryaspectoftheBuildingWorkmeetstherequirementsoftheBuildingAct1984andthe

BuildingRegulations.


AccessandHealthandSafety1.13 TheClientshallarrangeforNHBC’spersonneltohaveaccesstotheBuildingWorkatallreasonabletimesas

necessaryforNHBCtoprovidetheServices.1.14 NHBCshallensurethatitspersonnelcomplywiththeClient’sreasonableinstructionsinrelationtotheirconduct

whenvisitingthesiteoftheBuildingWork.1.15 TheClientshallensurethatHealthandSafetyRequirementsarecompliedwithatthesiteoftheBuildingWork.1.16 Withoutprejudicetoclauses1.14and1.15,NHBCreservestherighttodeclinetocarryoutorcompleteaninspection

visitfortheBuildingWorkwheninNHBC’sreasonableopiniontodosowouldputatriskthehealthand/orsafetyoftheNHBCemployeeassignedtocarryouttheinspection.

2. Documentation2.1 ThecopyrightinalldocumentspreparedbyNHBCinconnectionwiththeprovisionoftheServicesshallbelong

toNHBC.2.2 NHBCshallmaintainaccurateandreasonablydetailedrecordsofallworkdonebyNHBCintheprovisionofthe

Servicesforaperiodoffifteen(15)yearsfromthedateoftheapplicableFinalCertificate.

3. Fees and expenses3.1 NHBCshallchargefortheprovisionoftheServicesinaccordancewiththescaleofchargesmostrecentlynotified

totheClientfromtimetotime(orifnotsonotified,inaccordancewithitsmostrecentlypublishedratesofchargepublishedfromtimetotime)andinallcasessuchratesofchargeshallbequotedinUKpoundssterling,exclusiveofUKValuedAddedTaxbutinclusiveofthecostofdisbursements.

3.2 NHBCreservestherighttochargereasonableadditionalfees,whereadditionalsiteinspectionand/orperusalofdocumentsand/orattendanceatmeetingsinexcessofwhatisanticipatedbytheInspectionNotificationFrameworkdocumentare:

3.2.1 requestedbytheClient; 3.2.2necessitatedbyachangeinthescheduledprogrammeofworksfortheBuildingWork; 3.2.3necessitatedbyachangetothedesignoftheBuildingWork; 3.2.4necessitatedbytheClient’sDefault; 3.2.5necessitatedbyaneventofForceMajeure.3.3 TheClientshallpayNHBC’sinvoiceswithinthirty(30)daysofthedateoftheinvoice.3.4 IfanysumpayablebytheClientisnotpaidontheduedateitshallbepaidwithinterestontheoverdueamount

calculatedattherateof5%abovetheBankofEngland’sbaselendingrateforthewholeperiodfromthedateuponwhichthesumoughttohavebeenpaiduntilthedateofpayment(whetherbeforeorafteranyjudgement).

3.5 IfaContractisterminated,howsoeverarising,theClientshallpayNHBCanyinstalmentsofthechargesdueuptothedateofterminationandafairandreasonableproportionofthenextinstalmentofthechargesbasedontheamountoftheServicesprovidedpriortotermination.

4. Insurance4.1 NHBCshallmaintaininforceprofessionalindemnityinsuranceandpublicliabilityinsuranceinaccordancewithits

statutoryobligationsundertheBuildingAct1984.4.2 OntheClient’swrittenrequest,NHBCshallprovideevidencethattheseinsurancesarebeingproperlymaintained.4.3 WheretheBuildingWorkincludesthebuildingofresidentialdwellingsforsaleorlettingtheClientshallensurethat

eachresidentialdwellingunitbuiltiscoveredbyNHBC’sBuildmarknewhomewarrantyandinsurancecoverorbyasimilardesignatedwarrantyandinsurancecover.

5. Assignment and subcontracting5.1 NHBCshallnotassignanyContractandshallnotsubcontractanypartoftheServiceswithouttheClient’sprior

approval,whichshallnotbeunreasonablywithheldordelayed.5.2 TheClientshallnotassignthebenefitofanyContractwithoutNHBC’spriorwrittenapproval,whichshallnotbe

unreasonablywithheldordelayed.

Terms and conditions of NHBC Building Control Services Limited

6. Termination6.1 EitherpartymayatanytimebynoticeinwritingterminateaContractiftheotherpartycommitsamaterial

Defaultand:

6.1.1 thematerialDefaultiscapableofremedyandthepartyinDefaultshallhavefailedtoremedythematerial

Defaultwithintwentyone(21)daysofreceiptofawrittennoticespecifyingthematerialbreachandrequiring

itsremedy;

6.1.2thematerialDefaultisnotcapableofremedy.

6.2 EitherpartymayatanytimebynoticeinwritingterminateaContractasfromthedateofserviceofsuchnotice

iftheotherpartypassesaresolution,ortheCourtmakesanorderthattheotherpartyoritsparentcompanybe

woundup,orareceiver,manageroradministratoronbehalfofacreditorisappointedinrespectofthebusiness

oranypartthereofoftheotherpartyortheparentcompany,orcircumstancesarisewhichentitletheCourt

oracreditortoappointareceiver,manageroradministratororwhichentitletheCourtotherwisethanforthe

purposeofabonafidereconstructionoramalgamationtomakeawindinguporder,ortheotherpartyoritsparent

companyisunabletopayitsdebtsinexcessoftenthousandpounds(£10,000.00)withinthemeaningofSection

123oftheInsolvencyAct1986oranysimilareventoccursunderthelawofanyotherjurisdiction.

6.3 IfNHBCservesanoticeunderclause1.6,oraContractisterminated,howsoeverarising,NHBCshallnotifythe

relevantLocalAuthorityinwriting(withacopytotheClient)tocanceltherelevantInitialNoticeinwhichcase

NHBCshallceasetoberesponsibleforbuildingcontrolfortheBuildingWorkreferredtointheInitialNoticefrom

thedateofnotificationoftheLocalAuthority.

6.4 TheterminationofaContractshallnotprejudiceanyrights,dutiesorobligationsofeitherpartythatareexpressed

asorareintendedtobecontinuingafterterminationorwhichremaintobeperformedordischarged(asthecase

maybe)aftertermination.

7. Limitation and mitigation7.1 Neitherpartyexcludesorlimitsliabilitytotheotherpartyfordeathorpersonalinjurycausedbynegligence,orfor

liabilityarisingasaresultoffraud.

7.2 Subjectalwaystoclause7.1,NHBC’saggregateliabilitytotheClientforanyDefaultshallbelimitedinaccordance

withclauses7.3to7.5.

7.3 Withoutprejudicetoanyotherexclusionorlimitationofliability,foreachContracttheaggregateliabilityofNHBC

foranylossand/ordamageinrespectofanyDefaultshallbelimitedtothatproportionasitwouldbejustand

equitableforNHBCtopayhavingregardtotheextentofitsresponsibilityforthelossand/ordamageandonthe

assumptionsthat:

7.3.1 allotherparties(includingconsultants,advisors,contractors,subcontractorsandprojectmanagers)engaged

inconnectionwiththeBuildingWorkhaveprovidedcontractualundertakingsontermsnolessonerousthan

thoseintheContractinrespectoftheirobligationsinconnectionwiththeBuildingWork;

7.3.2therearenoexclusionsoforlimitationsofliabilitynorjointinsuranceorco-insuranceprovisionsagreed

betweentheClientandanyotherpartyreferredtointhisclauseandanysuchotherpartywhoisresponsible

toanyextentforthelossanddamageiscontractuallyliabletotheClientforthelossanddamage;

7.3.3allthepartiesreferredtointhisclausehavepaidtotheClientsuchproportionofthelossanddamagewhich

itwouldbejustandequitableforthemtopayhavingregardtotheextentoftheirresponsibilityfortheloss

anddamage.

7.4 Subjectalwaystoclause7.1,innoeventshalleitherpartybeliabletotheotherforanyoneormoreofthefollowing

thataresustainedorincurredbytheotherinconsequenceofaDefault;lossofprofit,lossofbusiness,lossof

revenue,lossorimpairmentofgoodwill,lossofopportunity,lossofanticipatedsavings,indirectlossordamage,

and/orconsequentiallossordamage.


7.5 Withoutprejudicetoanyotherexclusionorlimitationofliability,foreachContractthetotalaggregateliabilityofNHBCforalllossand/ordamageinrespectofallDefaultsoccurringinconnectionwiththesameContractshallinnoeventexceedthelesserof:

7.5.1 tentimestheamountofthefeespayablefortheServicesundertheContract;or

7.5.2tenmillionpoundssterling(£10,000,000.00).

7.6 TheclientshallreferonlytoNHBC(andnottoindividualsengagedbyNHBC,includingpersonnelanddirectors)forredressiftheClientconsidersthattherehasbeenanybreachofaContractandtheClientagreesnottopursueanyclaimsincontract,tort(includingnegligence)orforbreachofstatutorydutyagainstanyindividualsworkingforNHBCincarryingoutitsobligationsunderaContractatanytimeandtheClientacknowledgesthatsuchindividualsareentitledtoenforcethistermofaContractpursuanttotheContracts(RightsofThirdParties)Act1999.

7.7 TheClientshalluseitsbestendeavourstomitigateanyandalllosses,costsandexpensesincurredasaresultofanyDefault.

8. Disputes and complaintsIftheClientisnotsatisfiedwithNHBC’sperformanceoftheServices,withoutprejudicetoitsotherrightsandremedies,theClientisentitledtorequestthatNHBCinvestigatethematterinaccordancewithNHBC’scomplaintshandlingprocedure,detailsofwhichcanbeobtainedonrequestorfromwww.nhbc.co.uk.

9. Rights of third partiesExceptasprovidedinclause7.6,thirdpartieshavenorightsundertheContracts(RightsofThirdParties)Act1999toenforcethetermsofanyContract,butthisdoesnotaffectanyrightorremedyofathirdpartywhichexistsorisavailableotherwisethanunderthatAct.

10. Force majeure

NeitherpartyshallbeindefaultoforliableforbreachordelayinperformanceofitsobligationsunderaContractorbeliabletomakepaymenttotheotherorotherwiseliableforanylossesordamageswhatsoeverarisingoutoftheprevention,hindranceordelayoftheperformanceofanyofitsobligationstotheextentthattheperformanceofsuchispreventedorhinderedbytheoccurrenceofanyeventofForceMajeure.

11. Confidentiality 11.1 ThepartiesshallkeepconfidentialallConfidentialInformationanduseallreasonableendeavourstopreventtheir

respectivepersonnel,agentsandcontractorsfrommakinganydisclosuretoanypersonofanyConfidentialInformation;savethattheforegoingobligationshallnotapplyto:

11.1.1 anymatterwhichthereceivingpartycandemonstrateisalreadygenerallyavailableandinthepublicdomainotherwisethanasaresultofabreachofthisclause11;

11.1.2anydisclosurebythereceivingpartywhichisrequiredbyanylaw(includinganyorderofacourtofcompetentjurisdiction),anyParliamentaryobligation,ortherulesofanystockexchangeorgovernmentalorregulatoryauthorityhavingtheforceoflaw;

11.1.3anydisclosurebythereceivingpartyofinformationthatisalreadylawfullyinthepossessionofthereceivingparty,priortoitsdisclosurebythedisclosingparty.

12. NoticesUnlessotherwiseagreed,anynoticeorrequestrequiredorpermittedtobegivenunderorinconnectionwithaContractshallbegivenintheEnglishlanguageinwritingbyprepaidregisteredorfirst-classmail,orfacsimiletotherecipientatitsaddressassetoutintherelevantInitialNoticeortosuchotheraddressoraddresseeasmayhavethereforebeenfurnishedinwritingbytherecipienttothesendingpartyinaccordancewiththisclause.

13. Law and jurisdiction13.1 EachContractshallbegovernedbyandconstruedinaccordancewiththelawsofEnglandandWales.

13.2 IntheeventoflitigationarisingoutoforinconnectionwithaContracttheCourtsofEnglandandWalesshallhaveexclusivejurisdictiontosettleanyClaim,differenceorDispute(includingset-offsandcounterclaims)arisingoutoforinrelationtoit.


14. WaiverThefailureofeitherpartyatanytimetoenforceanyprovisionsofaContractshallinnowayaffectitsrighttorequirecompleteperformancebyeitherpartyofallitsobligationsunderaContract,norshallthewaiverofanybreachofanyprovisionbetakenorheldtobeawaiverofanypastorsubsequentbreachofanyprovisionortobeawaiveroftheprovisionitself.

15. Set offNHBCmaywithoutnoticetotheClientcombine,consolidateormergealloranyoftheliabilitiesoftheClienttoNHBCandmaysetoffortransferanysumsfromtimetotimeowedbytheClienttoNHBCinortowardsthesatisfactionofanyofthoseliabilities.


Part 3 Defined words and expressions

Approved InspectorShallhavethemeaninggiventotheexpression‘ApprovedInspector’intheBuildingAct1984andtheregulationsmadepursuanttothatAct,includingtheBuilding(ApprovedInspectorsetc.)Regulations2010(asamended);

Associate Anyperson,firmorcompanywhoatanytimeissubjecttoanysubstantialdegree,whetherdirectorindirect,tothesameownershipmanagementinfluenceorcontrolasyou;

Building RegulationsMeanstheBuildingRegulations2010(asamended);

Building WorkMeansthebuildingworkreferredtoinanInitialNotice;

ClientMeanstheperson,firmorcompanythathasrequestedthatNHBCactasApprovedInspectorandreferredtoasthe‘personintendingtocarryouttheworks’inanInitialNotice;

Confidential InformationMeans(i)allinformationdesignatedassuchbyeitherpartyinwriting;and(ii)allotherinformationwhichrelatestothebusiness,affairs,products,BuildingWork,tradesecrets,knowhow,personnel,customers,suppliersoraffiliates(includinginthecaseofNHBC,theNationalHouse-BuildingCouncilanditssubsidiaries)ofeitherparty;and(iii)informationwhichmayreasonablyberegardedastheconfidentialinformationofthedisclosingpartyoritsaffiliates;and(iv)data,includingdata,databases,reportsandanalysespreparedbyoronbehalfofNHBC;

ContractIsdefinedinPart1,paragraph5,undertheheading‘Introduction’;

DefaultMeansanybreachoftheobligationsofeitherPartyunderaContractoranydefault,act,omission,negligenceorstatementofeitherPartyinrelationtothesubjectmatterofaContractandinrespectofwhichthePartyisliabletotheotherParty;

Final CertificateShallhavethemeaninggiventotheexpression‘FinalCertificate’,intheBuildingAct1984andtheregulationsmadepursuanttothatAct,includingtheBuilding(ApprovedInspectorsetc.)Regulations2010(asamended);

Force MajeuereMeansanycauseaffectingtheperformancebyaPartyofitsobligationsarisingfromacts,events,omissions,happeningsornon-happeningsbeyonditsreasonablecontrolincluding(butwithoutlimitingthegeneralitythereof)emergencygovernmentalregulations,fire,explosion,lightning,storm,tempest,flood,burstingoroverflowingofwatertanks,apparatusorpipes,earthquakes,anydisaster,war,civilwarorarmedconflict,actsorthreatsofterrorism,nuclear,chemicalorbiologicalcontamination,pressurewavescausedbyaircraft,riotorcivilcommotion,failureinwholeorinpartbyastatutoryundertaker,utilitycompany,localauthorityorotherlikebodytocarryoutworksorprovideservices,anyaccidentallossordamagetotheparties’premises,oranyroadservicingthosepremises,anyfailureorshortageofpower,fuelortransport,anyblockadeorembargo;providedthatanysucheventisbeyondthereasonablecontrolofthepartyclaimingreliefanddoesnotarisefromanyact,omission,negligenceorwilfuldefaultofthatparty;


Health and Safety RequirementsMeanseachandeveryoneoftheClient’slegaldutiesapplicabletothehealthand/orsafetyofpersonsvisitingthesiteoftheBuildingWork,whichareapplicableonthedateordatesonwhichNHBCpersonnelarevisitingthesiteoftheBuildingWork;

Initial NoticeShallhavethemeaninggiventotheexpression‘InitialNotice’,intheBuildingAct1984andtheregulationsmadepursuanttothatAct,includingtheBuilding(ApprovedInspectorsetc.)Regulations2010(asamended);

NHBC CompanyAnycompanywithinthesamegroupofcompaniesasNationalHouse-BuildingCouncil,includingNHBCBuildingControlServicesLimitedandNHBCServicesLimited;

Party or PartiesMeanstheClientand/orNHBC;

ServicesMeanstheprovisionbyNHBCoftheservicesofanApprovedInspector.


HB111/20

NHBC, NHBC House, Davy Avenue, Knowlhill, Milton Keynes, Bucks, MK5 8FP

Tel: 0344 633 1000 Fax: 01908 747255 www.nhbc.co.uk

NHBC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

NHBC is registered in England and Wales under company number 00320784. NHBC’s registered address is NHBC House, Davy Avenue, Knowlhill, Milton Keynes, Bucks, MK5 8FP.

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