When Your Build Goes Wrong: Protecting Yourself in NZ

Building projects sometimes go wrong. Delays extend beyond reasonable limits. Quality falls short of standards. Builders fail to complete work. Understanding how to handle problems protects you when things deviate from plan.

The Building Act 2004 provides the legal framework for building work in New Zealand, including provisions for addressing defects and non-compliance. Understanding your rights under this legislation is essential when problems arise.

Prevention remains better than cure. Choosing good builders, using proper contracts, and monitoring progress reduce the likelihood of serious problems. But even well-planned projects can encounter difficulties.

Identifying Problems Early

Regular site visits let you observe progress and quality firsthand. Weekly or fortnightly visits during construction catch issues before they become major problems.

Independent inspections at key stages provide expert assessment. Building inspectors identify defects you might miss. Their reports document concerns that support later claims if needed.

Trust your instincts if something seems wrong. Ask questions about anything concerning. Legitimate builders explain their work readily. Evasiveness suggests problems.

Document everything. Photographs dated at each stage, written communications, and notes of verbal discussions create evidence if disputes arise.

Communication First

Most problems can be resolved through communication. Raise concerns with your builder promptly and clearly. Many issues result from misunderstanding rather than intent.

Put concerns in writing even after verbal discussion. Written records prevent disagreement about what was said. Email provides dated documentation of your concerns.

Allow reasonable time for response and remediation. Construction involves complexities that sometimes require time to resolve. Immediate demands may escalate problems unnecessarily.

Keep records of all communication and responses. If matters proceed to dispute resolution, this documentation becomes essential.

Contractual Rights

Your construction contract specifies processes for raising and resolving concerns. Following contractual procedures protects your rights and positions you correctly if disputes escalate.

Defects identified during construction should be notified in writing. Contracts typically require the builder to remedy defects within specified timeframes. Document what you reported and when.

Withholding payment for legitimate defects is generally permitted under contracts. However, payment withheld must be proportionate to the issue. Withholding large amounts for minor defects may itself breach contract.

Variations, delays, and extensions of time all have contractual procedures. Following these procedures maintains your rights under the contract.

Guarantee Protections

Master Build Guarantee and similar schemes provide protection beyond your direct contractual relationship. If your builder fails to address defects or becomes insolvent, the guarantee scheme provides recourse.

Notify the guarantee scheme of concerns even while attempting resolution with your builder. Early notification ensures your claim is on record if the builder fails to resolve matters.

Guarantee claims have processes and timeframes. Following these correctly ensures your claim proceeds smoothly. The guarantee scheme can advise on their requirements.

Guarantees have limits. Understanding what is covered and what falls outside coverage helps set realistic expectations about available protection.

When Builders Fail

Builder insolvency leaves projects incomplete. Guarantee schemes cover the cost of completion up to policy limits. Document the state of the project, work completed, and work outstanding.

Finding completion builders is challenging. Other builders are reluctant to finish someone else's work and take responsibility for what they did not construct. Expect completion to cost more than continuing with the original builder would have.

Deposits lost to failed builders may be claimable under guarantee schemes. Keep records of all payments made and when.

Dispute Resolution

Contracts typically specify dispute resolution processes. Mediation offers a facilitated negotiation before more formal processes. Many disputes settle at mediation, saving time and cost.

Adjudication under the Construction Contracts Act provides binding decisions on payment disputes. This process is faster and cheaper than court proceedings.

Court proceedings remain available for matters that cannot be resolved otherwise. Legal costs and timeframes make court action a last resort for most disputes.

Building disputes can involve the Building Practitioners Board if LBP conduct is at issue. Complaints to the Board can result in disciplinary action against practitioners.

Weathertightness and Leaky Homes

New Zealand's "leaky homes" crisis affected thousands of properties built between the 1990s and mid-2000s. If you discover weathertightness issues, specific processes apply.

The Weathertight Homes Resolution Service provides a pathway for claims relating to weathertight damage. Claims must generally be brought within 10 years of the act or omission that caused the damage under the Building Act 2004's limitation period.

Signs of weathertightness problems include water staining, musty odours, mould growth, swelling or warping of interior linings, and deteriorating cladding. If you suspect issues, engage a weathertightness specialist to assess the property before proceeding with any claims.

For homes built during the leaky homes era, thorough pre-purchase inspections are essential. The cost of weathertightness failure can exceed the property's value, making early identification critical.

Emotional Management

Building disputes create significant stress. Managing your emotional response helps you make better decisions and present your case more effectively.

Professional advice provides objective perspective. Lawyers experienced in construction disputes understand what is realistic and achievable. Their guidance prevents emotional decisions that might undermine your position.

Accept that some outcomes may be unsatisfactory. Not every wrong can be fully remedied. Knowing when to accept an imperfect resolution rather than pursuing indefinitely helps you move forward.

Your new home remains the goal. Problems during construction can be resolved or survived. Keeping perspective on the end objective helps navigate difficulties along the way.