17:
264:(FAP) for leaky homes, which expired in 2016. Under the scheme, the home owner shared the agreed cost of repairing their home with the government and the local council, if the council approved the original work and was participating in the scheme. The government and the council each contributed 25% of the repair cost with the owner paying the remaining 50%. Despite the FAP offering to give the homeowners the certainty of financial contribution and to help get leaky homes fixed faster, by November 2012 only 12 victims had received final payouts under the government scheme.
253:, National, warned that the size of the issue, at least $ 11 billion, was so gianormous that even a government with budget surpluses would struggle. He noted that: "...a Government who's running deficits - and has a forecast track of deficits for many years out - has to just sit there with its head in its hands, saying, 'Well, I just don't how to do this'." He also warned that it was necessary to come up with a solution so money could be spent on fixing houses, rather than paying lawyers, and that there was a risk of significant
246:
show problems, which had simply developed at a slower pace – and that despite
Building Act reforms in 2004, there were still houses being built that leaked badly due to shoddy workmanship. Timber needs a sustained period of wetting to form mould and subsequently rot. In laymens terms, the timber has to be wet longer than it is dry. In drier areas of the country it is unlikely the timber will remain wet long enough to instigate mould formation.
93:(or EIFS). Such cladding systems typically allowed for little construction or thermal movement so that fine cracks that appeared insignificant, and would have been relatively insignificant in traditional claddings such as weatherboard, allowed continuous ingress of moisture into the framing. These causes, combined with the reduced air movement through the prevalence of sheet cladding or sheet
65:
significant financial responsibilities with the builders (which in many cases have closed or otherwise removed themselves from liability) and the owners. Court cases have generally assigned around one third of the financial responsibility to local authorities. A 2013 Supreme Court case involving the
Auckland City Council extended the liability of local bodies.
218:. In November 2009, the National government decided not to offer a more substantial sharing of costs, and it is now estimated that in most cases, around 64% would have to be borne by the owners, 26% by Councils, and only 10% by government funds, while also forcing homeowners to sign away their rights to sue for more.
245:
The government has also imposed a 10-year limit (after construction) on claims, even though some building experts believe many cases will only become apparent during coming years, as building rot becomes advanced enough. They also warned that houses in drier parts of New
Zealand were now starting to
114:
Lack of detailed drawings for buildings was also a contributing factor. Some builders were unable to make a weathertight structure without proper guidance. This has partially been blamed on the breakdown of the apprenticeship system and unqualified builders in the marketplace. Council staff carrying
48:
The
Building Act 1991, which became law in 1993, changed building controls from a prescriptive system to a more self-regulated regime. In addition, the Government dropped the apprentice training system for builders and the related building trades. Some developers and builders knowingly or carelessly
288:
The placing into liquidation of
Mainzeal Construction and Property, New Zealand’s third largest construction company, in February 2013 was blamed on both a slowdown in commercial construction work and liability for several leaky apartment buildings in Auckland and Wellington where other parties had
163:
In its final 2002 report the
Overview Group recommended to the BIA that research be conducted as to whether there were any "issues regarding the structural strength and durability with respect to the maturity of timber". The outcome of that recommendation is currently unknown, with the Ministry of
144:
The
Building Act 1991 was replaced by the Building Act 2004, which introduced a licensing scheme for building designers, builders and related trades. Councils were required to be registered with a central authority and were to be subject to regular quality control procedure checks. Council building
279:
bills. From mid-2011, council must take leaky home syndrome into account when re-valuing homes, even if the home has not leaked. This takes into account that such homes face widespread stigma and are harder to sell. The lower values meant some owners paid 5% to 20% less for their rates, but other
127:
crop in the late 1980s, and the change to using short rotation 25-30 year old Pinus radiata at the same time. Overseas studies of similar short-rotation produced juvenile sapwood had concluded it was so different from "normal" wood that it would be wise to treat it as though it were a completely
232:
2 NZLR 548. There have also been accusations that parts of the legal and inspection professions are profiting substantially from disputes around the cases, and that significant money was diverted into these channels rather than into fixing the buildings. The government's position was assailed by
131:
A crash research-project by the New
Zealand Forest Research Institute to, amongst other objectives, attempt to identify how the new crop Radiata could safely be used in construction took place between 1995 and 1998. That project gave rise to many of the innovations and regulatory measures later
176:
report to the
Government in 2008 as being around NZ$ 11.3 billion for a "consensus estimate" of 42,000 buildings. Other building experts estimate the true cost at $ 23 billion for 89,000 buildings, and accused government of reducing the figure of affected buildings to 42,000 buildings
159:
The
Overview Group on the Weathertightness of Buildings that was appointed by the Building Industry Authority ("the BIA") to investigate the causes of the leaky building crisis did receive several submissions (including from the New Zealand Institute of Forestry, but not apparently from the New
39:
concerning timber-framed homes built from 1988 to 2004 that were not fully weather-tight. The problems often include the decay of timber framing which, in extreme cases, have made buildings structurally unsound. Some buildings have become unhealthy to live in due to moulds and spores developing
105:
In many cases claddings were not used within their specifications or not installed correctly. Many buildings built in the "Mediterranean" style used these types of cladding and had features such as recessed windows, flat roofs, minimal eaves, multiple storeys, complex roofs, solid balustrades,
64:
were later found to have issued Building Consents based on insufficient documentation, failed to carry out inspection of the work during construction, and issued code compliance certificates for buildings which were later found to have leaking problems. Consequently some councils now share
97:
for the monolithic look cladding, resulted in very damp conditions which are ideal for rot. A further exacerbating factor that resulted in more significant damage from the leaks, was the change to the New Zealand Standard for Timber Treatment in 1995, allowing the use of untreated
225:
noted that while claimants did not have to accept the settlement, legal costs for bringing suit could eat up any further money awarded to them. Some claimants have taken negligence claims against company directors of construction companies, relying on the decision in
155:
The Standard covering durability of timber framing was amended in late 2003 with the publication of NZS 3602: 2003 Timber and Wood-based Products for Use in Building. This revision required a return to the use of treated radiata framing in external walls.
148:
The Government dissolved the BIA (Building Industry Authority, the Government department which was responsible for the oversight and administration of the building sector) on 30 November 2004 and replaced it with DBH (Department of Building and Housing).
205:
was taking action against architects and builders involved with 87 of the 309 schools which have "leakiness" problems. One school in Wellington, Seatoun School, built at a cost of $ 5.3 million and opened in 2002 is costing $ 4.5 million to repair.
241:
estimated a potential gain by government of up to $ 2 billion. Further, National was also criticised that as an opposition party, they had constantly asked for the then Labour-led government to assist homeowners financially.
164:
Business, Innovation and Employment advising in July 2019 that it had been unable to locate any records at all relating to any research or consultation having been undertaken in response to the Overview Group's recommendation.
583:
1620:
201:
The Minister of Education said in 2009 that at least 73 schools were affected, and in 2011 that 157 schools still needed repairs, at an estimated cost of at least $ 1.5 billion As of 2013 the
584:"Failings of the Building Act 1991 – Were these a cause of the leaky building crisis? Breaking down the Building Act 2004: What does it really mean? « Legal Vision – Leaky Building Lawyers"
214:
As of mid-2009, plans for an up to NZ$ 6 billion bailout package shared between government and local authorities are in doubt because the amount could affect New Zealand's international
1272:
152:
Some of the Acceptable Solutions to the Building Code were re-written, most notably E2/AS1 External Moisture which covers the detailing of roofs and walls was greatly expanded.
261:
89:
in New Zealand) and EIPS (Externally Insulated Plaster System) that relied on a paint finish as the primary defence against water ingress. This system is very similar to
16:
1199:
472:
160:
Zealand Forest Research Institute) suggesting that the reduced rotation age of the then current Radiata Crop might be a causal factor in the leaky building crisis.
1465:
1603:
1151:
814:
1636:
1615:
1232:
1608:
40:
within the damp timber framing. The repairs and replacement costs that may have been avoided were estimated in 2009 to be approximately NZ$ 11.3 billion.
1677:
524:
420:
446:
267:
In 2009 it was estimated between 22,000 and 89,000 properties were affected, but the government's scheme would cover around 3,500 at the most.
1019:
1577:
1682:
1192:
1139:"The Renewal of Trust in Residential Construction - Commission of Inquiry into the Quality of Condominium Construction in British Columbia"
1037:
234:
90:
1646:
1526:
1504:
1323:
1298:
538:
498:
202:
1651:
115:
out building inspections had neither the required construction expertise to ensure weathertightness nor the intuition to look for it.
1598:
1536:
788:
1395:
190:
172:
Several thousands of homes throughout the country are still awaiting renovation, with a total cost that has been estimated by a
1692:
1687:
1672:
1641:
1470:
1330:
1185:
186:
1697:
1313:
765:
1166:
932:
904:
868:
732:
631:
557:
406:
388:
364:
1110:
476:
1318:
257:
rises in the major centres like Auckland, Tauranga, Wellington and Christchurch, of a scale that would "make eyes water".
1516:
1340:
1303:
1084:
106:
balconies and penetrations of the exterior cladding that increased the likelihood of water infiltrating the structure.
1562:
1492:
1400:
1355:
1350:
1345:
1308:
1277:
964:
704:
1475:
1438:
1412:
1242:
228:
102:
timber for wall framing. As this timber has little natural resistance to rot when wet, damage occurs more quickly.
1593:
1335:
760:
233:
mayors of affected Councils and by pundits, who noted that by paying only 10%, and then receiving 12.5% back in
1531:
238:
173:
1056:
992:
840:
678:
337:
132:
implemented to attempt to allow for safe construction using juvenile sapwood including, notably, the rise of
1487:
1448:
1378:
1171:
297:
A similar problem arose in the early 1980s, some 10 years before New Zealand and for similar reasons in the
133:
1572:
1541:
1480:
1453:
1443:
1208:
1061:
937:
909:
873:
845:
737:
636:
609:
605:
318:
424:
123:
A likely major contributing factor was the exhaustion of New Zealand's "First Rotation" (50-60 year old)
1567:
1521:
1262:
1237:
309:
and has been an ongoing issue that is estimated to have caused $ 4 billion in damage since the 1980s.
1383:
1227:
450:
94:
1460:
1417:
50:
1111:"Mainzeal sale likely if liquidated – PM (Leaky buildings sink Mainzeal Property and Construction"
1405:
1388:
1293:
306:
250:
49:
constructed buildings with numerous faults and short-cuts. An architectural design trend towards
1362:
709:
298:
502:
1546:
302:
185:
The majority of affected buildings are homes or apartments, but in 2011 the twenty-year-old
61:
237:, the government was actually making money from the crisis. Another report commissioned by
53:-style houses with complex roofs, plastered exterior walls, internal decks and small or no
1509:
82:
128:
different species. New methodologies to utilise the wood would have to be developed.
1666:
1222:
215:
124:
573:
NZJFor 47(3) 2002 - "Value Recovery Project (1995-98) - What Did we Learn" - D. Cown
900:
21:
1252:
276:
254:
36:
1257:
1497:
1422:
1247:
73:
There are many reasons that some buildings from the late 1980s were leaky.
1138:
1177:
222:
275:
Councils and politicians have indicated that the crisis could increase
558:"Corewood (Juvenile Wood) in Pinus Radiata - Should we be Concerned"
449:. Department of Building and Housing and Consumer NZ. Archived from
81:
A major one was the increase in the use of cladding systems such as
1152:
Vancouver Condo Expert Gerry Fanaken, Georgia Straight, 22 May 2013
249:
In February 2010, New Zealand's Building and Construction Minister
177:
because they were allegedly "unhappy" with the expert prediction.
54:
15:
942:
1181:
1621:
Australian and New Zealand Standard Industrial Classification
815:"Wellington school's $ 4.5 million leaky building bill"
280:
ratepayers had to pay more to make up the difference.
1085:"Mainzeal subcontractors blocked from building sites"
679:"It's not if – it's when for our dripping time bombs"
260:
In May 2010 the New Zealand Government launched the
1629:
1586:
1555:
1431:
1371:
1286:
1215:
1174:– the Act covering assessment and claims resolution
789:"Legal action begins on leaky school repair bills"
539:"Kevin Clarke:Govt can't escape leaky homes blame"
447:"Why homes leak : Background to the problem"
965:"Leaky homes a disaster and a $ 2b tax windfall"
1172:Weathertight Homes Resolution Services Act 2006
1133:
1131:
338:"Leaky homes will cost $ 11.3b to fix - report"
189:for children with cancer and their families at
35:is an ongoing construction and legal crisis in
1020:"More than 1000 waiting on leaky home repairs"
501:. ConsumerBuild. 25 March 2010. Archived from
1193:
8:
1637:Campaign Against Foreign Control of Aotearoa
1616:Trans-Pacific Strategic Economic Partnership
1038:"Only 30 take up Govt's leaky homes package"
993:"Govt stumped as leaky home bill skyrockets"
527:. New Zealand Listener. 20–26 February 2010.
499:"Why homes leak – Background to the problem"
28:Construction and legal crisis in New Zealand
841:"$ 6b leaky homes bill threat to NZ credit"
421:"Exterior walls : Monolithic cladding"
1200:
1186:
1178:
987:
985:
1278:New Zealand property bubble, 1987–present
813:Mansford, Tennessee (22 September 2011).
136:and other laminated structural products.
933:"Leaky homes deal just one option - Key"
895:
893:
891:
672:
670:
606:"New Department of Building and Housing"
563:. New Zealand Forest Research Institute.
389:"Leaky homes throw up $ 6bn repair bill"
382:
380:
378:
305:. It is commonly known in Canada as the
407:"Court gives hope to leaky home owners"
329:
931:McCracken, Heather (9 November 2009).
867:McCracken, Heather (8 November 2009).
193:was demolished as leaky and replaced.
1109:Harris, Catherine (7 February 2013).
1083:Donoghue etc, Tim (7 February 2013).
7:
733:"Schools' leaky building toll soars"
658:Leaky home obligations 'overlooked'
91:Exterior insulation finishing system
1647:New Zealand Council of Trade Unions
1057:"Leak crisis will hit every pocket"
905:"State needs to plug leaks scandal"
839:Laxon, Andrew (12 September 2009).
387:Laxon, Andrew (19 September 2009).
1273:Finance company collapses, 2006–12
787:O'Callaghan, Jody (8 March 2013).
759:Fisher, Amanda (28 January 2011).
731:Gibson, Anne (18 September 2009).
703:Rankin, Janine (9 February 2011).
677:Laxon, Andrew (27 February 2010).
632:"Government must plug those leaks"
630:Brian Rudman (18 September 2009).
14:
1678:Political scandals in New Zealand
1018:Chisnall, Kim (7 November 2012).
1396:New Zealand Trade and Enterprise
363:Coursey, Michelle (8 May 2004).
293:Similarities to British Columbia
1642:New Zealand Business Roundtable
963:Gibson, Anne (26 March 2010).
604:Maharey, Steve (1 July 2004).
409:. Stuff/Fairfax. 1 March 2014.
145:inspectors remain unlicensed.
1:
1055:Morris, Bruce (2 July 2011).
761:"Huge bill for leaky schools"
705:"Ronald McDonald House to go"
262:Financial Assistance Package
20:Repair of leaky apartments,
1683:Property law of New Zealand
1401:Reserve Bank of New Zealand
1263:Mother of all Budgets, 1991
1714:
1413:Overseas Investment Office
473:"Builders Guide to Timber"
365:"Leaky looks deter buyers"
229:Morton v Douglas Homes Ltd
1594:Closer Economic Relations
1268:Leaky homes crisis, 2000s
869:"Leaky homes' heartbreak"
239:North Shore City Council
174:Price Waterhouse Coopers
1449:New Zealand Dairy Board
1154:. Retrieved 2013-11-22
660:by Catherine Harris in
475:. BRANZ. Archived from
289:gone out of existence.
1693:Construction accidents
1688:Housing in New Zealand
1673:Economy of New Zealand
1578:International rankings
1466:Information technology
1454:New Zealand Wool Board
1444:New Zealand Meat Board
1209:Economy of New Zealand
1062:The New Zealand Herald
997:The New Zealand Herald
969:The New Zealand Herald
938:The New Zealand Herald
910:The New Zealand Herald
874:The New Zealand Herald
846:The New Zealand Herald
738:The New Zealand Herald
683:The New Zealand Herald
637:The New Zealand Herald
610:New Zealand Government
543:The New Zealand Herald
393:The New Zealand Herald
369:The New Zealand Herald
342:The New Zealand Herald
319:Housing in New Zealand
284:Effect on liable firms
235:goods and services tax
25:
1698:Houses in New Zealand
1652:New Zealand Institute
1599:Free trade agreements
1167:Weathertight Services
210:Financial liabilities
203:Ministry of Education
187:Ronald McDonald House
19:
1630:Unions and lobbyists
1384:New Zealand Treasury
1253:Rogernomics, 1984–90
95:insulating materials
85:sheet (generic name
24:, Wellington in 2010
1556:Economic conditions
1418:Commerce Commission
1258:Ruthanasia, 1990–93
903:(9 December 2009).
479:on 19 February 2013
453:on 18 December 2011
191:Wellington Hospital
1537:Telecommunications
1406:Official cash rate
1389:New Zealand budget
1294:New Zealand dollar
1248:Think Big, 1979–84
1243:Black Budget, 1958
1233:IC&A Act, 1894
1044:. 12 October 2012.
999:. 27 February 2010
664:15 July 2012 p. A7
344:. 22 December 2009
307:Leaky condo crisis
251:Maurice Williamson
57:also factored in.
33:leaky homes crisis
26:
1660:
1659:
1363:New Zealand pound
766:The Dominion Post
710:Manawatu Standard
662:Sunday Star-Times
556:D J Cown (1992).
427:on 27 August 2012
299:Canadian province
62:local authorities
1705:
1299:Dollar banknotes
1223:Vogel Era, 1870s
1202:
1195:
1188:
1179:
1155:
1149:
1143:
1142:
1141:. 26 April 2010.
1135:
1126:
1125:
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1080:
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1073:
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1015:
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1004:
989:
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601:
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545:. 25 March 2010.
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489:
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463:
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423:. Archived from
417:
411:
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403:
397:
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384:
373:
372:
360:
354:
353:
351:
349:
334:
303:British Columbia
197:Schools affected
168:Housing affected
119:Juvenile sapwood
77:Cladding systems
1713:
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1708:
1707:
1706:
1704:
1703:
1702:
1663:
1662:
1661:
1656:
1625:
1582:
1551:
1510:Licensing trust
1427:
1367:
1282:
1238:Wool boom, 1951
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1206:
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505:on 4 April 2010
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221:Prime Minister
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181:Other buildings
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1228:Head tax, 1881
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1219:
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1212:
1207:
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1197:
1190:
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1176:
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1161:External links
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525:"Crisis point"
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1563:Social class
1493:Woodchipping
1331:Dollar coins
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1527:Oil and gas
1505:Hospitality
1476:Aquaculture
1439:Agriculture
483:8 September
457:20 December
431:8 September
348:26 February
37:New Zealand
1667:Categories
1587:Agreements
1372:Government
1120:7 February
1094:7 February
948:14 October
916:14 October
880:14 October
852:14 October
772:14 October
744:14 October
716:14 October
589:9 December
325:References
1532:Retailing
1498:Kauri gum
1423:KiwiSaver
1042:3 News NZ
1024:3 News NZ
643:7 October
140:Aftermath
87:Fibrolite
1604:Malaysia
1488:Forestry
1432:Industry
1379:Taxation
1287:Currency
1003:20 March
824:14 March
798:14 March
509:25 March
313:See also
223:John Key
110:Drawings
1573:Poverty
1542:Tourism
1481:Whaling
1471:Fishing
1216:History
974:26 July
688:3 March
615:17 June
44:Factors
1568:Income
1522:Mining
1068:1 July
69:Causes
1609:China
1324:$ 100
1115:Stuff
1089:Stuff
561:(PDF)
277:rates
255:rates
60:Some
55:eaves
1547:Wine
1461:Beer
1319:$ 50
1314:$ 20
1309:$ 10
1122:2013
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350:2012
31:The
1356:$ 2
1351:$ 1
1346:50c
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1304:$ 5
301:of
134:LVL
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