Under the NT Government’s fidelity fund certificate guidance, figures checked 1 October 2026, a prefabricated house does not require a fidelity fund certificate, and flats greater than three storeys—excluding undercroft or underground parking levels—do not require one either. The same guidance covers houses, duplexes, townhouses and units in complexes up to three storeys, while additions or extensions require a certificate when the work is over $25,000 and increases the residential floor area.
Which buildings and projects need a fidelity fund certificate?
The NT Government’s current project guide gives the following scope:
| Building or work | Fidelity fund certificate needed? |
|---|---|
| House | Yes |
| Duplex or townhouse | Yes |
| Units in complexes up to three storeys, excluding undercroft or underground parking levels | Yes, as prescribed residential building work |
| Flats greater than three storeys, excluding undercroft or underground parking levels | No |
| Prefabricated house | No |
| Additions or extensions to a house, duplex, townhouse or flats less than three storeys | Yes, if the work is over $25,000 and increases the floor area |
| Garden sheds and fences | No |
| Bathroom renovation alone | No, unless completed with other work on a building that requires a certificate |
Residential building cover is issued in the form of a fidelity fund certificate. The NT Government says this cover is for residential building work only, not commercial buildings, transportable buildings or government contracts.
The flat wording needs care. The prescribed-work section refers to units in complexes up to three storeys, while the project table describes flats less than three storeys as requiring a certificate and flats greater than three storeys as not requiring one. The cited material does not reconcile the wording at exactly three storeys, so a borderline project should be confirmed with the NT Government rather than resolved by assumption.
Do the current rules apply to every existing certificate?
No. Legislative reforms concerning compliance costs for low-risk projects and consumer protections commenced on 30 March 2026.
| Reform | What changed |
|---|---|
| Minimum prescribed value | Increased from $12,000 to $25,000 |
| Building permit extensions | The non-completion cover timeframe now recognises any approved extension to a building permit |
| Earlier certificates | The amendments apply only to fidelity fund certificates issued after 30 March 2026 |
The changes were not applied retrospectively because that would change liability under issued certificates for future claims and could affect the financial position of Fidelity Fund NT. For a certificate issued before 30 March 2026, check its issue date and terms rather than assuming the amended rules apply.
The $25,000 test also needs to be read in context: the guidance separately identifies building a new home as prescribed residential building work. The stated additions-and-extensions test applies where work is over $25,000 and increases a property’s residential floor area.
When must a builder obtain the certificate?
There are several separate obligations:
- Registered builders must maintain annual cover. They must apply to Fidelity Fund NT for an annual level of cover and show that they have the financial capability and experience required for the level sought.
- Every relevant job needs a certificate. Builders must obtain a fidelity fund certificate for every client job that includes prescribed residential building work.
- Timing is critical. The certificate must be in place before obtaining a building permit for prescribed residential building work and before demanding payment from the owner.
- Owner builders need separate consideration. An owner builder must have a certificate to cover future owners for building defects. That cover becomes available only after the property is sold or transferred and the owner builder experiences a qualifying insolvency or deregistration event.
Fidelity Fund NT manages the fund and is currently the only provider in the Northern Territory. A project combining a prefabricated house with other prescribed work should still be checked as a whole because the builder’s certificate obligation applies to any job that includes prescribed residential building work.
What costs can a fidelity fund certificate cover?
A certificate covers owners against listed costs where the builder becomes bankrupt, dies, disappears or has their registration cancelled by the Building Practitioners Board.
| Listed item | Scope stated by the NT Government |
|---|---|
| Changing builders | Costs associated with transitioning to a new builder to complete the work |
| Non-structural defects | Rectification costs in the first year after completion |
| Structural defects | Rectification costs for six years after completion |
These are the listed protection areas, not a promise that every building cost or loss will be covered. The certificate’s terms and the circumstances of the builder event remain important.
When can a fidelity fund claim be made?
The current claim guidance allows a claim within 90 days of either becoming aware of a defect or a trigger event occurring. The 90-day amendment applies only to certificates issued after 30 March 2026.
A fidelity fund claim cannot be made merely because defects exist if the builder has not died, disappeared, become insolvent or been deregistered. For a dispute about rectifying or completing work that does not meet the fidelity fund claim test, the NT Government says the Commissioner for Residential Building Disputes can be contacted to mediate or make decisions.
What should builders and owners check before acting?
Check the current NT Government regulator page, identify whether the job includes prescribed residential building work and confirm when the certificate was issued. This is general information, not financial or legal advice. If an insurance policy is also being relied upon, check its product disclosure statement (PDS) as well.
Sources
FAQ
Does a prefabricated house need a fidelity fund certificate?
The NT Government’s project table marks a prefabricated house as No. However, if the same job includes other prescribed residential work, the builder must obtain a certificate for that job.
Are flats greater than three storeys excluded from the requirement?
Yes. The NT Government’s table says flats greater than three storeys, excluding undercroft or underground parking levels, do not need a fidelity fund certificate.
What if a flat is exactly three storeys high?
The prescribed-work description includes complexes “up to three storeys”, while the project table says flats “less than three storeys” need a certificate. Because the cited material uses both formulations, an exactly three-storey project should be confirmed with the NT Government.
When must the certificate be in place?
It must be held before obtaining a building permit for prescribed residential building work and before demanding payment from the owner. Builders also need a certificate for every client job containing prescribed work.
How long is available to make a claim?
The current guidance allows a claim within 90 days of either awareness of a defect or the occurrence of a trigger event. This amendment applies to certificates issued after 30 March 2026.