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A West Auckland first-home buyer claims their builder has “threatened” to go into liquidation rather than pay a $16,000 fine for failing to ensure the home has a usable gas cooking system.
But developer Kedar Civil Engineering argues the cooking system works, the home passed all target="_blank">Auckland Council building approvals and the company didn’t threaten liquidation but instead told the truth: it cannot afford to pay the fine.
Thomas Cho and wife Sol Yun earlier bought the Westgate home on Herekino St in 2021 before discovering they could not get large 45kg gas bottles delivered on-site.
That’s because a water tank has been built on the path to the fitting, making the passage too narrow - 47cm rather 60cm - for gas delivery workers to access with their trolleys.
Thomas Cho and wife Sol Yun say they can't fit a big gas bottle for cooking at their West Auckland property because the point of access was poorly designed.
Cho argued at a September 2023 Disputes Tribunal hearing that failing to provide a wider pathway breached the Building Act as the building work did not show “reasonable skill and care”.
Disputes Tribunal referee D Alofivae agreed, saying builders need to “ensure all features” of a property “are working well, and can be accessed to be used”.
He ordered Kedar Civil Engineering to pay $16,017.04 - the amount plumbers quoted Cho to fix the problem.
However, Cho said Kedar Civil Engineering had since failed to pay the fine, adding to his family’s “stress”.
When he sought payment by email from Kedar Civil Engineering, he said he believed company sole director Kristy Xiaoyi Peng was threatening to go into liquidation rather than pay.
In emails seen by the Herald, Peng told Cho said she wanted “reconciliation” but the company was operating at a loss due to the difficult real estate market.
“If you enforce the court’s decision for payment, our company will have to liquidate, and you won’t receive any money. But our company want to give you some money for your inconvenience,” Peng said in an October 2023 email.
The tight access point to the gas fittings outside Thomas Cho and Sol Yun's house on Herekino St in Westgate has led to a Disputes Tribunal claim against builder Kedar Civil Engineering.
Gas fittings on the exterior facade of a house owned by Thomas Cho and Sol Yun on Herekino St in Westgate, Auckland. The area's narrow access point is the subject of a Disputes Tribunal claim by the couple against Kedar Civil Engineering, the builder of the house. Photo / Thomas Cho
This week, Peng told the Herald she felt sympathy for Cho and his wife.
However, her company hadn’t chosen to place the water tank in that location, she said.
Instead, it had followed an engineer’s design exactly, and that engineer said the tank needed to go in that position because it was the property’s high point, she said.
“The tank’s placement strictly followed the guidelines set by the designer and the council,” Peng said.
“As developers, compliance with these standards is essential for obtaining the Code Compliance Certificate (CCC) and listing the property.”
She said she didn’t agree with the Disputes Tribunal decision because she had followed all expert guidelines.
She also said that while large gas bottles cannot be delivered, small bottles - such as those from petrol stations - can be connected.
“I firmly believe that our tank and gas systems are working in order. Buyer is living in normal condition [sic],” she said.
She said prospective buyers could also see the gas fitting’s narrow access during the house’s open home viewing and could have chosen not to buy then if they thought it was a problem.
That meant while Kedar Civil Engineering lost the tribunal ruling, Peng believed it had a right to seek a cheaper quote for fixing the problem.
“Given the current challenging market and economic conditions, our company is facing financial difficulties, making it challenging to meet the full payment. It is not a threat but a reflection of the economic reality,” Peng said.
“We remain open to compensating Thomas Cho and Sol Yun, and we emphasise our willingness to avoid bankruptcy.”
But Cho said as “everyday consumers”, he and his wife couldn’t be expected to know the ins and outs of gas systems and that the access point was too narrow when viewing the open home.
He said they had been told the house was in working order and had all its approvals - an argument the tribunal backed up.
Cho said he’d been trying to negotiate with Kedar Civil Engineering for two years, including offering the company the opportunity to pay in installments.
He also said he believed Peng and former Kedar Civil Engineering director Jared Guojun Cha have been involved in a similar situation in the past.
In that case, reported by the Heraldin April 2021, an East Auckland couple said they faced financial ruin after Cha’s company I Home Furture built a home for them. Peng also worked as the project manager on the house.
The Disputes Tribunal ordered I Home Furture to pay $30,000 to the couple for failing to concrete the driveway.
I Home Furture then went into liquidation before paying the $30,000 the homeowners claimed at the time.
But Peng told the Herald this week that I Home Furture had since reached a settlement with the couple.
Yet first-home buyer Cho is not convinced.
He said he’s speaking out in the hope Kedar Civil Engineering relents and pays up, and also to avoid having more people become “victims” of the same situation in the future.
“We don’t want people to experience what we experienced, because especially [during] the first week, it was a nightmare for us,” he said.
Sheng Guo and partner Maggie Law had troubles with their builder in 2021, part of a dispute regarding their new home's driveway. Photo / Brett Phibbs
