Carl Taylor: Combined Building Supplies CEO on the Government requiring mandatory warranties for new home builds and renos

Fears the Government's new construction requirements will unintentionally create a monopoly.

The Government's announced mandatory warranties for new homes three storeys or less, and all renos worth at least $100,000. 

Building and Construction Minister Chris Penk says it's intended to protect homeowners from cowboys.  

Combined Building Supplies Chief Executive Carl Taylor told Mike Hosking there's been difficulty in the past to get insurers on board. 

He says there is work to change this, because there is much need for more competition in this space. 

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Episode Transcript

Speaker 1 (00:00):
So we've got more detail on the government's reorganization of
construction warranties coming for all new homes and renovations over
one hundred thousand dollars. They'll cover you for one year defects,
ten year structure, all the bills about half of a
percent of the total build price. Carl Taylor is the
CEO of Combined Building Supplies co OP and is with us. Carl,
good morning, Good morning, Mike.

Speaker 2 (00:18):
How are you.

Speaker 1 (00:19):
I'm very well. Indeed, is this a fixes? This? The
problem solved? Do I never have to interview you about
problems like the civil Again?

Speaker 2 (00:26):
Look, I think it's the start of solving a problem.
The biggest issue we have problem an organization is that
we've only got three players in the market, and only
one of them is truly independent. So I'm quite fearful
that we're naturally going to create a unintentional monopoly in
the true course when this happens.

Speaker 1 (00:45):
If you were going to do that, and we saw
us doing that, why wouldn't somebody into the market or
offer an alternative if it's there to be had another
word to wander in the market work.

Speaker 2 (00:55):
Yeah, the problem is we're not big enough for us
We've had insurance here before and they've left the country.
We're just not a big enough country to warrant. However,
we're currently talking to insurers as well and trying to
get some more here. We just need some more competition
around this space. And not everyone wants to become a
member of an organization. So if you look at a

(01:15):
smaller builder, he may not want to join an organization
just to offer a guarantee. So we need to be
able to offer them more choice than the one that's
currently available. That's independent.

Speaker 1 (01:25):
How much of this is about cowboys in the marketplace
and solving that particular problem.

Speaker 2 (01:32):
Look, as business owners, I think we've all had dore
I say, mongol clients. We've all had those, and a
product will certainly help that. And there are some cowboys
out there, but the majority of the industry are just
good operators and not much will change with that. But again,
we just need more choice in this market.

Speaker 1 (01:52):
And for how does this stub tailing with the master
bill guarantee.

Speaker 2 (01:57):
Well, there's only one product of threes, so again, like
I don't want to speak about anyone else's product, but
they all have their positive and negative I think most
of them have probably more their negatives at the moment,
from what I am left to believe in what I'm told.

Speaker 1 (02:13):
Here's another good question from a listener is the new
building warranty, does the person who made the mistake fix
it or do you get to choose the person to
fix it for yourself?

Speaker 2 (02:25):
Apparently at the moment, from my understanding, with the current
products in the market, you don't get the true to
pick your builder. Like any insurance policy, but that stuff
at all. There are a lot of unanswered questions around this,
which is why we're sort of starting to voice some
concern around it.

Speaker 1 (02:41):
Okay, so give me your pricie. If your magic won
this one, where are you at with it? What do
you want done? And if you do all of that,
are we good to go.

Speaker 2 (02:51):
Look, I think like any other insurance like car insurance,
house insurance, you need more players. You need at least
five or six choices. We don't have that at the moment. Again,
this doesn't come out until it doesn't come into Laura
until twenty seven. We've got time to get it here.
At the moment, there's just enough choice.

Speaker 1 (03:09):
Good stuff. CUP appreciate the insight. Carle Taylor, who's the
CEO of the Combined Building Supplies co Op, so that
was worthwhile at lead.

Speaker 2 (03:15):
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