Builder Eligibility Does Not Guarantee Construction Quality or Solvency

What the assessment is designed to do

icare assesses building businesses before allowing them to obtain HBCF cover. Eligibility may set limits on project type, size, turnover or the amount of concurrent work. This assists the insurer in managing scheme risk.

The assessment is not a detailed technical review of the plans, price, subcontractors or site supervision for the homeowner's particular project.

Financial conditions can change

A business may be eligible when the policy is issued and later experience cost escalation, cash-flow pressure, disputes, director changes or rapid growth. Eligibility is not a promise that the company will remain solvent until completion.

Homeowners should still be alert to warning signs: requests for early payment, frequent entity changes, unexplained delays, unpaid trades, reduced site activity, demands for cash outside the contract or reluctance to provide records.

Quality still requires verification

An eligible and licensed builder can perform defective work. Independent inspections at critical stages remain valuable, particularly before concrete, waterproofing, wall linings, ceilings, roofs and external finishes conceal the work.

Inspect against the contract, approved plans, engineering, manufacturer instructions and applicable standards. Record non-conforming items before the next payment or close-up.

Use eligibility as one part of due diligence

Check the contractor's current licence, company registration, disciplinary history, references and completed projects. Confirm the exact legal entity and obtain the project-specific Certificate of Insurance. Review whether the contract price appears realistic and whether the programme and progress-payment schedule are coherent.

No single check eliminates construction risk. The owner is better protected by a layered system: reputable contractor selection, clear documents, valid insurance, controlled payments, independent inspections and complete records.

Practical takeaway: Eligibility makes project insurance possible; it does not certify quality or future solvency. Treat it as one control within a broader risk-management process.

How ARK Houses can help

ARK Houses does not treat HBCF eligibility as a substitute for stage inspections and quality control. Our projects use documented hold points for concealed and safety-critical work, and our recovery work applies the same controls to interfaces with the first builder's construction.

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