PRM SEM 02 - 09. Leaky Home Crisis Flashcards
Leaky Homes Crisis
The Leaky Home Crisis is a New Zealand situation in which many buildings (mainly houses, 2
or 3 storey apartment blocks, but also schools and some other buildings) are suffering from chronic and widespread water penetration. Canada had a similar situation a decade earlier
called a Leaky Condo Crisis (condominium = apartment block).
People living in leaky homes can develop health problems (physical and mental) and their
property value is drastically reduced.
Resolving the issues (who is to blame, who is to pay for repairs) has been a long drawn out
process. Funding repairs is a problem. Repairs themselves are difficult, expensive and drawn out.
It is estimated to be a $11 billion problem (Building and Construction Minister Maurice
Williamson, 2010) affecting tens of thousands of dwellings (the consensus is 50,000).
It is also affecting many schools.
Leaky Home Claddings
Most of these buildings have monolithic cladding, sheets with a plaster and paint finish hiding joints:
- EIFS (Exterior Insulation and Finish Systems): Thick (about 40mmm) polystyrene
panels with a plaster and paint finish, introduced in the 1980s. - Texture Coated Fibre Cement: Thin (7.5mm) fibre cement sheets with a textured
plaster-like coating and paint finish, introduced in the 1970s. - Stucco: Plaster over a variety of sheet backings including fibre-cement and plywood,
with a paint finish, about 25mm thick, introduced in the 1920s.
Because all these systems are fixed over timber framing, water penetration will cause the
building to rot from within.
In addition flat roof systems and poor window design have also caused chronic leaking.
Solid plaster (plaster on concrete or blockwork) has not generally caused problems as that
system can not rot (though it can still get damp).
Signs of trouble are: leaks, dampness, swelling or cracking in lining or cladding, staining,
blistering paint, mould, musty smells etc. Look especially at joints and around windows (and
other penetrations: pergolas, meter boxes, screws). Water can also creep up behind cladding
that is touching the ground.
Leaky home Causes
There is debate about the precise cause of the problem, many people blame a shift to
“untreated” timber framing but in my view the crisis is a “perfect storm” resulting from a
combination of these factors in the 1990s:
- Inexperience with new forms and materials (both designers and tradespeople)
- Claddings: new monolithic systems as above, reliant on paint as a key element to stop water penetration.
- Plaster: like icing on a cake, it hides poor workmanship and covers faults.
- Design: popularity of “Mediterranean” or dry-climate architectural forms involving flat roofs, internal balconies, parapets, lack of eaves, recessed windows, internal gutters, tiles, plaster, complex forms and details.
- Poor design/lack of good detailing (eg parapets, cappings, flashings, penetrations, pergolas, cantilevered decks, recessed windows … )
- Lack of good detailing resources ( eg manufacturers’ recommendations, BRANZ solutions etc)
- “Untreated” timber allowed to be used in framing
- Poor workmanship and supervision on site, unskilled labourers, many sub-contractors.
- High density, low cost speculative housing developments
- Government de-regulation (eg private Building Consent processes)
It’s also worth noting that older houses in New Zealand (like villas) leak, but un-insulated walls with no nogs allow air to circulate and dry out timber. Once wet, insulation in a modern wall doesn’t dry out.
In 2002 the Building Industry Authority appointed a Weathertightness Overview Group to investigate the weathertightness of buildings in New Zealand.
The Hunn Report identified the causes of leaky buildings and made many recommendations.
Leaky Buildings: Building Act 2004:
The Building Act 2004 replaced the 1991 Act and introduced:
- “a review of the Building Code for more clarity about building standards and more guidance about how to meet those standards
- licensing and accreditation, which· aim to provide more certainty that the people doing and certifying the work have the skills for the job
- more scrutiny in the monitoring process that checks building and design work, and overseeing of the sector by the government.”
(Source (now defunct): Department of Building and Housing http://www.dbh.govt.nz/ba-about-the-building-act)
As well, the BIA (Building Industry Authority) was dissolved and replaced by the Department of Building and Housing (DBH). (This has since been replaced again!)
And a warranty was implied in all building contracts for household units (but not commercial or institutional), whether specified in the contract or not.
Weathertight Homes Resolution Service (WHRS)
First established in 2002 it was criticised for being too slow and was “streamlined” in
an Act in 2006.
At first the WHRS focused on mediation (which can happen without lawyers) after the
Service had produced an independent report assessing the damage. Parties such as
designers, builders, sub-contractors, Councils and manufacturers would also produce
their own Assessments.
It is worth noting that many large manufacturers and product suppliers seem to have
escaped being drawn into these disputes.
If parties didn’t resolve the matter, then they had to move on to the High Court, an
expensive and time consuming process.
This still happens but the WHRS Act 2006 increased the powers of a Tribunal.
Claims to the WHRS
To make a claim to the WHRS:
- The claim must be brought by the owner(s) of the house.
- The house must be used principally for residential purposes.
- The house must have been built or altered within the 10 years immediately
prior to the date of lodging the claim - The house must be or have been leaking and damaged as a result.
Process of Resolution with the WHRS
An Assessor produces a report using invasive testing (cutting holes etc) and also gives their view of who should be parties to the claim (eg designer, builder, materials supplier, Building Consent Authority (Council)). It is then up to the claimant which parties they wish to pursue. A claimant can also make repairs in the meantime.
A Tribunal member is appointed to run the case as an Adjudication with these stages:
- “Pre-hearing: A preliminary conference will be held to consider matters such as
joining and/or removing applications, and setting out a timetable for the
adjudication and a mediation date if applicable. - Mediation opportunity: The Tribunal may refer the claim to a time-limited mediation.
- Adjudication hearing: The hearing is a judicial proceeding where the Tribunal clarifies and tests evidence presented to them.
- Decision: After a hearing the Tribunal produces a legally binding decision”.
If the claim is settled during the mediation, the hearing will not be needed. A binding
and legally enforceable agreement is signed by the parties and witnessed by the
mediator. It is usually confidential (secret) and can be enforced in the District Court.
Leaky Buildings Financial Assistance Package:
In 2010 the Government announced a “financial assistance package to help homeowners get their leaky homes fixed faster’’. It expired in July 2016.
Under this plan the Government and local authorities each contributed 25 per cent of agreed repair costs with homeowners funding the remaining 50 per cent (backed by a government loan guarantee).
This was voluntary. Homeowners accepting the money were not able to pursue / sue the Council or Government.
However they could continue to pursue or sue designers, builders, sub-contractors, suppliers etc. through the Weathertight Home Resolution Service process described above, or the courts (primarily the High Court due to the sum involved).
Leaky Buildings: 10 Years (also often called “Long Stop”)
The Building Act establishes a cut off on legal proceedings of 10 years from the date of any problem relating to building work. In most cases this is 10 years from the Code Compliance Certificate.
This also applies to claims under the Weathertight Homes Resolution Services Act meaning that for owners of houses built within the last decade, the long-stop has now run its course.
LOOK AT BUILDING PERFORMANCE WEBSITE! - LOTS OF GOOD RESOURCES RELATING TO THESE TOPICS AND ALL OTHER LECTURES BRUH
