Leaky building report calls for public inquiry

11.30am

An independent report into the leaky building crisis is calling for a public inquiry into the building industry.

The report recommends that the Building Industry Authority (BIA) -- the governmental body the report was prepared for -- "discuss with the Minister of Internal Affairs the desirability of a public inquiry into the building industry".

The report, which was released this morning, makes a total of 20 recommendations about ways of improving building practices.

The BIA said today it would act immediately to implement those recommendations.

The report recommended "serious consideration" be given to what measures might improve accountability of all parties in the building sector and suggested the BIA look seriously at a national registration scheme for builders.

It also reinforced the national safety warning issued by the authority last month that people could be killed or seriously injured by rotting balconies and recommended the authority work with the Ministry of Health to decide how the potential health effects of fungal decay should be managed.

"The overview group has been concerned by the trauma experienced by many individuals when faced with the reality of a leaking home," the report said.

"We have met a number of people who face major financial difficulty as a result of the inadequacies of the building process. 'Let the buyer beware' is one approach -- but it is the view of the overview group that the buyer in this case has good reason to expect a home that does not leak."

The New Zealand Building Code requires buildings to be constructed to resist the penetration of moisture from the outside.

The team recommended that the BIA review and upgrade the criteria for what constituted a reasonable level of detail on weather tightness, develop more prescriptive solutions and methods to verify external moisture, and sponsor research into developing effective moisture management systems.

It also recommended the BIA discuss with Internal Affairs the "minimise compliance cost" philosophy to ensure building standards and quality were not compromised.

The three-man inquiry team, which includes former State Services Commissioner Don Hunn, former Victoria University architecture dean David Kerhohan and engineering consultant Ian Bond, was asked to obtain evidence to show how widespread and how big the problem was, and to identify all likely causes.

The BIA began the inquiry after it received reports from several industry organisations of a high number of leaking and rotting houses.

Today's report emphasised buildings could be built watertight and most were. However, it also said there was evidence of a growing number of new housing constructions showing signs of water damage.

"The most significant incidences noted are in upmarket-style, one-off single dwellings and multi-unit condominium-type apartments," the report said.

"Although the full extent of the problem is not yet known, the overview group is convinced of the significance of the problem and that urgent action is required and must not be delayed while the extent is investigated further."

Insurance companies offered no protection for what was seen as deterioration rather than an event, the report noted.

"Legislation offers little course for redress. Dispute resolution and litigation has to be based around the contracts undertaken. It is the view of the overview group that it is the area of contracts throughout the building process where responsibilities and accountabilities might be addressed."

- NZPA, HERALD STAFF

Full text of the Building Industry Authority report

* If you have information about leaking buildings,
email the Herald or fax (09) 373-6421.

Further reading
Feature: Leaky buildings

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