Watertight Contract Benefits

FAQ

There is no Government Statutory Insurance for Residential Swimming Pool Construction
available in Queensland
(Unlike Residential Home construction, where the BSA provides Insurance protection for Consumers)

As  an  additional  and  exclusive  benefit  for  Customers  who  contract with them, the Members of the Swimming Pool & Spa Association of Queensland Inc. (SPASA Queensland) have established a mutual discretionary  trust  fund  (the  SPASA  Benefits  Trust)  which  provides that SPASA Queensland as the Trustee, in its sole and absolute discretion, can pay certain benefits (called Watertight Contract Benefits) to participating Customers to ensure that in the event of the Death or Insolvency of the Contractor:

1. Your Residential Swimming Pool Construction Contract can be completed, and

2. Your entitlements (up to 6 years), under the required Statutory Warranty period can be honoured

In Summary, the benefits of Watertight Contract Benefits are:

Benefit - Part A. “Watertight” Contract Completion
will indemnify you for all costs (in excess of the amounts retained by you) that are reasonably and necessarily incurred to complete the Works, as specified in your SPASA Queensland Recommended Domestic Contract for the Construction, Installation or Renovation of a Domestic Swimming/Spa Pool, following the failure of the Contractor to do so, as a result of “Contractor Default.”

• Simply said, this means that if the SPASA Queensland Member is unavailable to complete the obligations under the Contract due to “Contractor Default”, and you are covered by Watertight Contract Benefits, the Contract will be completed
• Even if your Contract has not yet started you may be able to recover the deposit paid (less any required "Excess")
• “Watertight” Contract Completion Benefits do not cover disputes, any workmanship defects or other warranty items – it simply ensures the completion of the Contracted Works

Then, when your contract is completed:

Benefit - Part B. “Watertight” Defective Construction
will indemnify you for all costs (following completion of the contract), that are reasonably and necessarily incurred to rectify “Defective Works” (which adversely affect he structural adequacy, performance of functional use of the swimming pool/spa) up to a period of six years after the Date of Practical Completion of your contract

• Simply said, this means that if the SPASA Queensland Member is unavailable to complete the work required under the Statutory Warranty requirements for reason of “Contractor Default”, and you are covered by Watertight Contract Benefits, the work required to repair, replace or reinstate the Works will be completed.
• This part of the Benefit commences on the date of Practical Completion (copy of the certificate required), and automatically ceases 6 years from that date.

Can my Contract be Covered?
If your swimming spa or pool is for personal private use, and you have signed a SPASA Queensland Recommended Domestic Contract with a current Member of SPASA Queensland – your Contract can be covered by Watertight Contract Benefits upon completion of the prescribed Application Form and payment of the prescribed Contribution Fee.

How much is my contract covered for?
Your contract will be covered up to the value of the Contract (or, up to $300,000) – whichever is the lesser amount.

Can I get “Watertight” Contract Benefits from any Swimming Pool Contractor?
NO! These Consumer Benefits are only available from current Members of the Swimming Pool & Spa Association of Queensland Inc. (SPASA Queensland).

What do I do if I think there may be a claim?
Immediately you become aware of any circumstance you think likely to give rise to a claim under these Benefits you must advise SPASA Queensland (as trustee), in writing, as soon as practicable, and;
within 90 days of becoming aware – you must notify the Trustee by a written claim form and pay the non-refundable Excess.

What is “Contractor Default”?
“Contractor Default” is the failure by the Contractor as a result of the declared Death of the Contractor, or, the Contractor becoming Bankrupt, or the Contractor entering into a Composition, Deed or Scheme of Arrangement with or for the benefit of creditors, or, the Contractor (being a company) is placed into Liquidation or Receivership (and there is a failure by the appointed Administrations to - complete the Contracted pool works or, (following completion of the pool works) the failure to complete any “Statutory Warranty” work required (as determined by the “Trustee”).

What do I have to do to get these Benefits?

• When you are about to sign a Contract with a SPASA Queensland Member, make sure you ask for and obtain a Benefits Application Form for “Watertight” Contract Benefits
• Ensure that both you and the current SPASA Queensland Member both complete and sign the Application Form
• Ensure that both the completed form and the contribution fee are sent immediately to the SPASA Queensland Office.
• SPASA Queensland (as Trustee) will check and record your Benefit details, and send you a Benefit Certificate confirming that you are registered for these Benefits
• If you have not received a confirming Benefit Certificate within 21 days, or, by the proposed commencement date of the Contracted works you should immediately contact the SPASA Queensland