Long tail on leaky building claims

This blog was written by Mary Haggie

New Zealand’s leaky building crisis involves homes and buildings constructed in the period (mainly) from 1995 – 2005.  Building owners have ten years from the date of the completion of the works to bring a claim against the builder, developer, Council and other parties.  As expected, claims have tailed off in the last few years, but there are still significant numbers of live claims.  For example, the Wellington City Council reports that it has 58 live claims which are expected to cost the Council $41 million over the next five years.  Auckland Council’s exposure will be far greater than this. In terms of residential properties alone, the Weathertight Homes Resolution Service reported that, as at 29 February 2016, it had 797 open claims with over 500 of these relating to Auckland Councils.

It is apparent that the risks of claims for leaky buildings are largely now with ‘deep pocket’ parties such as Councils and large building companies, as the developers and smaller companies have long since gone out of business.


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