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Have you ever heard of it?

A Cautionary Tale of Construction Failures and Ongoing Challenges

I’ve been reading the book “Rottenomics” by Peter Dyer. Have you heard of it? If you’re a builder or are building a house – it’s a fascinating must read that hits close to home over the ditch here within the Australian building industry.

New Zealand’s leaky building crisis stands as one of the nation’s most significant construction and public health disasters. Emerging in the late 1990s and early 2000s, it has left a lasting impact on homeowners, the construction industry, and regulatory frameworks.

Origins of the Crisis

The crisis primarily affected timber-framed homes built between 1988 and 2004, which were not fully weather-tight. If you read last month’s newsletter you will know that “all claddings leak” and unfortunately, during this period of time, a bunch of things all happened at once that created disaster for so many people.

These buildings often suffered from moisture ingress, leading to the decay of timber framing and, in extreme cases, structural unsoundness. The use of untreated timber framing and monolithic cladding systems e.g fibre cement or External Insulation and Finish Systems (EIFS) cladding systems contributed to these issues

Contributing Factors

Several factors converged to create the perfect storm:

• Regulatory Changes: The Building Act 1991 shifted building controls from a prescriptive system to a more self-regulated regime, reducing oversight .
• Design Trends: The popularity of Mediterranean-style homes with complex roofs, plastered exterior walls, and minimal eaves increased the risk of water ingress .
• Construction Practices: Poor workmanship, the use of substandard materials, and the decline of the building apprentice system led to a de-skilling of the workforce .

Impact on Homeowners and the Economy

The financial and emotional toll on homeowners has been immense. As of the most recent investigations, repair and replacement costs were estimated at approximately NZ$47 billion.

For context, the Canterbury earthquakes cost around NZ$40 billion. The leaky homes crisis is often called NZ’s “slow-motion disaster”.

Beyond the financial burden, many residents faced health issues due to mould and dampness, and the stigma associated with leaky homes led to decreased property values .

Legal and Governmental Responses

In response to the crisis, the New Zealand government established the Weathertight Homes Resolution Services Act, allowing affected homeowners to seek redress. However, the deadline to bring new claims expired on 31 December 2021 . Legal battles have ensued, with some homeowners spending over a decade seeking compensation, as seen in a recent Auckland case where the council was found to have breached its duty of care .

Ongoing Challenges

Despite increased awareness and regulatory changes, the problem persists. New cases continue to emerge, and some experts argue that leaky homes are still being constructed today . The legacy of the crisis serves as a cautionary tale, emphasising the need for stringent building standards, proper oversight, and continuous education within the construction industry.

Australia

In Australia we also have a performance based building code which is different in every state and is policed by an under resourced system, our design choices often prioritise aesthetics and profit over performance and durability and we too have poor training of trades and builders past their initial qualification, inadequate inspections and private certification which leaves openings for serious defects leaving home owners with very few options.

Conclusion

The leaky building crisis in New Zealand underscores the consequences of regulatory relaxation, design trends unsuited to the local climate, and inadequate construction practices. While steps have been taken to address the issue, ongoing vigilance is required to prevent similar disasters in the future. Here in Australia, let’s learn from other people’s mistakes! Upskill yourself, design and build with durability as the primary intention, use high quality, climate appropriate, durable weather resistive barrier membranes and use a vented and drained cavity!

And as always we’re always up for a good building science conversation so please email or call whenever you like.

Jess

2024 – Auckland Council Breaches Duty of Care – NZ’s Leaky Building Crisis still haunts NZ

Buy “Rottenomics” here