Builders in the NT will meet Lands and Planning Minister Gerry McCarthy next week to discuss concerns over the territory’s draft residential builders’ insurance legislation.

The Master Builders Association NT branch, along with about 20 of its members, will meet to discuss concerns over a perceived lack of regulatory detail in the draft bill.

“We all know the devil is in the detail and until we see it the industry is not in a position to consider the bill in its entirety,” the association’s executive director, Graham Kemp, told insuranceNEWS.com.au.

The move to a government-underwritten scheme follows the collapse of several NT builders in recent years.

Key elements of the bill are regulated progress payments to manage the scheme’s liability; consumer guarantees on standards; a dispute resolution process; and mandatory last resort insurance.

But Mr Kemp says the draft bill outlines a plan to only provide consumers with cover for 20% of the contract. This is a concern for builders because the NT is the most expensive part of the country in which to build.

The draft legislation proposes an increase in the defect period from 13 weeks to two years and builders believe this will make claims liable to “abuse”.

Mr Kemp says the 13-week period has generally proved satisfactory. “In reality, if something is wrong with a house most builders will return immediately to fix it.

“[Builders] don’t want to see it sit there and after two years effectively get a new house,” he said.