[The Hodges]

There are lots of good threads on the forum regarding houses, but I thought I’d do one specifically for leaking buildings for those who’d like to know a bit more.

My intention is not to scare or worry anyone, but hopefully once you’ve read this, you’ll have a better understanding of the subject. Also, I’ve tried to keep this brief, but this is difficult while trying to cover the subject for everyone’s benefit, and so if anyone else has anything constructive to add, please do so.

First of all, I’d like to say that I consider I am qualified to comment on this subject, being a RICS qualified Building Surveyor for 8 years and since I’ve been in NZ, I have completed pre-purchase inspections, leaking building investigations and re-cladding work. I’ve also had this checked by one of our weathertightness surveyors in the office for accuracy.

Also, I’d like to add that this is only a guide, and not a substitute for paid professional advice. I have tried to make sure it is as accurate as I possibly can, but as my old man says, “There is bad advice and then advice you pay for.”

[The Hodges]

There are various sites out on the internet such as:
Department of Building and Housing (http://www.dbh.govt.nz/weathertightness-index);
Consumer Build (http://www.consumerbuild.org.nz/publish/leaky.php);
Leaky Homes Actions Group (http://www.leakyhomesactiongroup.org.nz);
Nailed (http://www.nailed.co.nz/Leaky_Buildings_520.aspx)
which will give you advice and I recommend that you visit these . Also the
NZ Herald (http://www.nzherald.co.nz/feature/index.cfm?c_id=562)
has a section devoted to the issue.

These explain the issues, so rather than duplicate what they say, I’ll try to summarise and offer some practical advice.

[The Hodges]

From the mid-1990s, certain materials were used in the construction of buildings without proper detailing and construction. This allows water ingress and due to the use of untreated pine (timber) in the wall framing, the establishment and rapid growth of decay.

The buildings typically affected, but not exclusively, are modern cladding systems, ‘Mediterranean’ style/look buildings using monolithic (seamless) cladding systems (i.e. not solid), such as textured wall surfaces made out of plaster on polystyrene or fibre cement sheet. However, please note that this does not necessarily mean that all of these buildings are ‘leaky buildings’.

i.e. http://www.consumerbuild.org.nz/uploads/casestudy2a.jpg

Also, there are a number of other factors, including wind zone; number of storeys; roof/wall intersection design; eaves width; envelope complexity and deck design all of which will affect the weathertightness of a building.

So why did they use these systems? To give their properties the timeless look of plaster…

[The Hodges]

Once water or moisture gets behind certain cladding types, the water is trapped and cannot easily escape or evaporate.

In 1998, a change in the New Zealand standard for Timber Treatment (as referenced in New Zealand Building Code Acceptable Solution B2/AS1) allowed the use of untreated kiln-dried timber in wall framing. If this untreated timber framing gets wet, the timber starts to rot and degrade. Likewise, steel framed buildings and treated timber can also be affected if they remain wet long enough. This causes, in some cases, extensive damage to the fabric and structure of the house.

http://www.consumerbuild.org.nz/uploads/casestudy2b.jpg and http://www.consumerbuild.org.nz/uploads/casestudy2c.jpg

A side effect of leaking buildings is the risk to human health. Some moulds that grow on damp timber and other materials can cause respiratory and skin problems.

[The Hodges]

In April 2004, NZBC Acceptable Solution (B2/AS1), was amended and this dealt with the use of treated and untreated timber. The amendments required the use of treated timber where there was any risk of water getting into the timber frame (i.e the external walls). New housing has been required to incorporate treated timber from this date. Now, it is claimed that this has dramatically reduced the effects of water that might get through the cladding, but the water still gets through.

Also, the Acceptable Solution relating to the wall cladding (E2/AS1) has been changed to accommodate a cavity, but we are now finding that this has not always been installed correctly. Although the use of treated pine will resist decay, it will not prevent it completely, as the treatment will leach out with prolonged washing, and any water ingress could result in other problems…

[The Hodges]

There is no guarantee that any new building will not have problems with it, like any new house anywhere in the world. However, there are ways in which you can reduce the risk. Use professionals and a contractor who is recommended, or who are able to show you examples of their previous work.

For the worse case, check that any professionals that you may employ have Professional Indemnity cover that specifically covers them for leaky buildings among the other normal types of things that they require insurance for. A number of companies in NZ have been unable to get cover to cover weathertightness due to the current and potential claims. Also, check the level of cover, as it is usual for companies to limit the cover to a multiplier of the fee. This is no good if the designer is liable and it ends up costing you significantly more than you saved in the fee.

Also, if the contractor is offering a guarantee, check the small print e.g. is there a maximum to the guarantee; is it insurance backed (i.e. if the contractor goes under is it backed by another reputable company) etc.

Also, ensure that any works have Council Approval and that you get Code Compliance Certificate (CCC) which is NZ’s equivalent to Building Control Completion Certificate.

See the Consumer Build (http://www.consumerbuild.org.nz/publish/doesnt-leak.php) website for more information.

[The Hodges]

Consumer Build offers advice on buying a house generally (http://www.consumerbuild.org.nz/publish/buyinghouse.php), but they also offer advise on buying a leaking house (http://www.consumerbuild.org.nz/publish/leaky/leaky-buying-existing.php), although as far as I’m concerned the advice should be simple. Get it inspected.

If you wish to proceed with the purchase, have a Pre-Purchase Inspection done. See links at:
http://www.consumer.org.nz/PDF/house-checklist.pdf
http://www.consumerbuild.org.nz/publish/buyinghouse.php

I also recommend that you obtain a copy of the CCC to see if it has been signed off by Council and when it was dated, as this will confirm if it has been signed off by Council and if there are any problems in the future whether it is within the prescribed time of 10 years, which is the maximum timescale which you may be able to make a claim after any defective building work is completed in New Zealand law.

Also, if you are intending to buy an apartment, ask for a copy of the Body Corporate (equivalent to residents) minutes to see if any weathertightness issues have been discussed.

[The Hodges]

A Pre-Purchase Inspection should comply with NZ Standard 4306. A Pre-Purchase Inspection is non-intrusive, non-destructive and a visual inspection only. Please take note of this when you commission one. A surveyor should use a moisture meter, which in this instance is non-invasive and indicates moisture problems and water leaks without making holes in the walls. They do not guarantee that no weathertight problems exist, but might find areas of high moisture levels.

However, not all defects may be found, so ask the person doing the inspection to highlight the areas they couldn’t check and identify risk areas that might warrant further investigation. Most pre-purchase inspection reports will have a disclaimer on weathertightness as some of it is too difficult to check without removing linings or claddings. But a pre-purchase inspection is still recommended and the report should comment on weathertightness risk.

Also, make sure that the surveyor has Professional Indemnity cover. As I’ve said before, a number of companies in NZ have been unable to get cover weathertightness due to the current and potential claims and the same advice applies again…

As a word of warning, there are a lot of inspectors out there. They’ll only be too happy to take your money off you and give you what you think you need, but will be useless and disappear if the worse happens.

The Consumer Build (http://www.consumerbuild.org.nz/publish/buying/buyinghouse-inspections.php) gives some guidance, although strangely it doesn’t give the NZ Institute of Building Surveyors (http://www.buildingsurveyor.co.nz) website address.

[The Hodges]

Firstly, don’t panic. You are not the first and you most definitely won’t the last. And don’t feel embarrassed. Even the architect in my office lives in a monolithic clad building.

Have a look at Consumer Build (http://www.consumerbuild.org.nz/publish/leaky-whattodo.php) website for advice on this, but whatever, GET LEGAL ADVICE. There are lots of lawyers and solicitors out in the market specialising in claims such as this and they will be able to give you the proper advice for your claim.

Whatever route you go down, whether the Weathertight Homes Resolution Service (WHRS) or civil claim, you will need an invasive and destructive survey done, which will involve:

• Drilling holes in the external walls
• Cutting A4-sized holes in the external walls
• Taking samples of wood or mould for laboratory testing.

Obviously, many people will not be happy about having their home investigated, but this is a necessary step to take the situation forward.

Many claims are costed by a quantity surveyor, but I recommend that if you need works doing, arrange for it to be tendered and use that as the claim as an absolute minimum, with the best way forward having the works complete. I have heard of one claim, where the cost of settlement was half the cost of the works.

Also, please bear in mind that this is a stressful time and it is often families that suffer. Not only yours, but often the developer and builder may be a one man band too, and so he’ll be staring down the barrel of bankruptcy if the case goes against him…

[The Hodges]

So what’s the end? Well, if you like a house, any house, then please buy it with your eyes open. A pre-purchase inspection shouldn’t tell you whether or not to buy it, but simply to advise you of the implications if you did buy the house. And if you think that you have a leaker, don’t panic, it may be stressful, but you aren’t alone.

I hope that this helps those who had heard about the subject, and wanted to know a bit more.

[kanatakiwi]

Wow. Thanks for doing all that work to put that information out for everyone. sorry I can't give you any more rep right now, have to spread it around so have a couple of these....:raebanana :raebanana

[Chiba]

Agreed! Very useful information - thanks a lot.

[dilanium]

Thanks! Very Useful!

[Pip]

Great post Tony - I'm sure this will be very useful to lots of people out there!

[james the mechanic]

Excellent & very informative, well done,:nice1
I’m off to add to your reputation
James

[nick w]

hi I was interested to read your text. I am an architectural technologist with 20 years experience here in the uk and looking to relocate within two years. I am self employed, but also work for a local rural chartered surveyors. I have met up with NZ recruitment consultants who mentioned the need for more inspectors for this problem. Do you think its an area of employment I should be seriously looking at? As you know our timber frame experience in uk is not great and to be honest I'd probably prefer to be working for a small practice doing cad work for new bricks and mortar residential type builds. Any pointers with regard to architectural work would be really helpful as I'm struggling to find that special niche.
nick

[Caroline and Dave]

Excellent post Tony,
I see you are catching me up.Tried to rep you but as usual, It says I must spread it around a bit more so have this instead:cheers

Dave and Caroline

[Super_BQ]

Excellent post!

However, can you give me an explanation why NZ had to suffer with all these leaky homes when Vancouver (Canada) had suffered the same problem 15 - 20 years ago? You do realise that many building contractors lay the blame of NZ's leaky homes as a Canadian innovation - when in fact, the design originated from California before arriving to Vancouver.

Perhaps we need to know who are the fools that believe NZ has a climate much like California?

Furthermore, building techniques in NZ are worlds apart from America. Why would they even consider implementing such plaster over polystyrene exteriors?

You won't catch me buying any such plaster exterior with eaveless roof houses ever! That's just asking for trouble in a NZ climate. :exit

[The Hodges]

Excellent post!

Thanks

However, can you give me an explanation why NZ had to suffer with all these leaky homes when Vancouver (Canada) had suffered the same problem 15 - 20 years ago?

Dunno mate, wasn't around...

You do realise that many building contractors lay the blame of NZ's leaky homes as a Canadian innovation - when in fact, the design originated from California before arriving to Vancouver.

I have had heard this before, but seen nothing to substainate it. To be honest, IMHO, the current Acceptable Solution doesn't go far enough and I would must rather use the details specified by Trada (http://www.trada.co.uk/), which include a sheathing layer over the framing, similar to the US and Canadian standards (presumably, although I haven't seen them).

Perhaps we need to know who are the fools that believe NZ has a climate much like California?

It isn't just the details, it is the workmanship too...

Furthermore, building techniques in NZ are worlds apart from America. Why would they even consider implementing such plaster over polystyrene exteriors?

There is nothing wrong with these materials, if they are detailed and installed correctly...

You won't catch me buying any such plaster exterior with eaveless roof houses ever! That's just asking for trouble in a NZ climate. :exit

Perhaps you should build your own and then you know what you're getting.

[holland]

hi were not there yet,but its one subject that does worry me as i have read so much about the poor housing in nz.Very informative but needs reading a few times i think i need to find you when were taking the big step to buying a possible nightmare out there keep up the good work, graham and jade

[The Hodges]

The majority of leaky buildings result in a reclad, whether it be with a similar system or a weatherboard. Worse case is a knock down and rebuild, if the decay is sufficient enough, but with the Acceptable Standard requiring a cavity based system, then often the decayed timber is replaced and a new cladding system is installed.

The cost of the recladding a typical three bedroomed stand alone single storey house is $250,000, but once you add design fees ($22,000); project management fees ($20,000) and building consent fees (£3,000), it'll rise to $295k. Do not forget that this excludes lawyers fees (which can double this total - I kid you not), GST and rent if you don't want to live through a building site for four months...

I don't wish to depress anyone, but I'd thought that I'd share this with you also.

If anyone has any concerns, or queries, feel free to drop me a pm, but I am only an individual so I might not respond to you straight away.

[The Hodges]

I’d thought I’d update this thread, with some more information as I gain more of an insight in to the problem.

As I’m overseeing recladding works, I am finding that the buildings aren’t constructed in accordance with the original design drawings and we’re having to put these issues right as well. The trouble is that much of the work is unknown, as it is concealed behind the existing cladding and the latest advice from two leaky building experts is that home owners should move swiftly to fix their places and claim the money later and I agree with them, if you can afford to.

Unfortunately, the only true way you'll know what it will cost to have your place fixed is to go ahead and have it fixed, then claim later, otherwise you're only claiming based on an estimate. Apparently, loans to fix houses are readily available from most banks, which had a vested interest in them being fixed, although I can’t confirm it this is true.

[The Hodges]

I've also found The Leaky Homes Community Trust (http://www.leakyhomes.org.nz), which is a charity organisation that provides assistance to owners of leaky homes who cannot afford to pursue legal action against those parties responsible for building their leaky homes.

Should the worse happen, you might be grateful of any finanical assistance that they can give.

[The Hodges]

I've just found this old article titled Sellers cash in on leaky homes (http://www.nzherald.co.nz/topic/story.cfm?c_id=164&objectid=10358987).

The first two paragraphs are ominous:

Forty-two owners have sold their leaky homes, despite being in the middle of a Government agency's resolution process - and one has pocketed the settlement payout without doing the repairs.

The loophole has prompted warnings that buyers should ask direct questions of vendors and estate agents about whether the home has been subject to a claim to the Weathertight Homes Resolution Service.

I know that it's an old article, but just make that you ask the right questions.

[The Hodges]

Another link for those that I have just found for those that are interested:

Leaky Home Forum (http://www.leakyhomeforum.co.nz/)

I hope that none of you need to use it!

[TrentBridge]

What a great, but scarey and important thread.

We are still in UK and are just looking at houses over the web. Are weatherboard houses okay do you think?

Is an alternative to look at new or almost new houses or are there still these potential problems in houses constructed more recently?

If building techniques have improved more recently could you say what would be approx the oldest age of property to have benefitted from improvements in building technique?


Thanks :)

[The Hodges]

Are weatherboard houses okay do you think?

Generally yes, although this does not guarantee that they will be problem free. Just to clear this up though, weatherboard is timber planks and Linea is fibre cement planks installed to look like weatherboard. Each have there pros and cons.

Is an alternative to look at new or almost new houses or are there still these potential problems in houses constructed more recently?

If building techniques have improved more recently could you say what would be approx the oldest age of property to have benefitted from improvements in building technique?

There are less problems with new or nearly new houses. However, houses post 2004/2005 will have less problems, as the new Compliance Document was introduced.

However, I caviat this advice by advising that if you should get a professional to survey your property and comment specifically about the weathertightness risk. In today's economic climate the power is with the purchaser.

All the best and good luck.