Leaky houses blamed on stingy buyers

Home owners who demand cheap housing are partly to blame for the leaky building crisis, says a report by an industry expert.

Auckland building disputes arbitrator Geoff Bayley says house and apartment buyers demand corner cutting to keep construction prices down, so they should not be surprised at having problems.

But Consumers' Institute chief executive David Russell says it is ludicrous to blame house buyers for problems caused by the construction industry.

"Of course people are looking for cheaper housing. But to palm off the blame to the consumer is nothing short of ridiculous."

Mr Bayley yesterday gave the Herald a detailed report he has submitted to the Building Industry Association's inquiry into the leaky buildings crisis.

He describes the fast-developing problem as "a multi-headed monster", caused partly by the construction industry but also by buyers.

"It's like trying to change the engine of a car speeding down a motorway," he said.

"We have to try to fix the existing problems, but also work out how to stop them happening on new sites."

Mr Bayley's 21-point checklist traces the blame back to home owners, who demand house-cost savings "resulting in less details and services from architects, engineers and draughtsmen".

The lowest-cost mentality is picked up by builders, he says.

"An increase in the number of design-and-build projects has encouraged competition in under-design. So the builder who leaves out the most wins the job and, in turn, promotes lower standards of project management, design and construction."

Mr Bayley says the quality of building work has been lowered by disputes over payments on construction sites, an area he hopes will be resolved with the passing of the Construction Contracts Bill, which he helped draft. It aims to fast-track building dispute resolution.

His report says the rise of labour-only contracts also has encouraged a mentality that does not enhance quality of work on sites.

Contracts between building trades and owners are often poorly written, which leads to disputes and increases the risk of a compromise in standards on the job. Details on working drawings are questionable.

As well, the loss of apprenticeship schemes in many trades has reduced skill levels in the building industry. Inappropriate materials have been used to achieve certain designs "with little or no thought to waterproofing".

The report says many house and apartment designs are simply impractical, so materials, techniques and workmanship are stretched beyond their limits.

The rise of plaster-texture construction compared to traditional weatherboard or brick claddings and a decrease in the use of protective eaves or overhangs from roofs have compounded problems.

The report says design professionals, builders and subcontractors are no longer taught "the fundamental techniques of building weatherproof structures" as compared to a few decades ago. While a home or unit is being built, variations are often made to its design. If problems arise, "they are covered up before a consent inspection is made".

Projects have less construction supervision, and substandard workmanship and materials are being used. Also, home owners are doing more work, such as landscaping, which can exacerbate problems.

"They often raise the level of the ground around the building or build a concrete deck against a plaster wall," Mr Bayley says.

He gives a do-it-yourself warning, saying such problem repairs often cause "an increase in damage and loss to home owners because of lack of information".

He also blames home owners for not maintaining properties, citing water problems on roofs, gutters, rain-waterheads, downpipes, catchpits, silt traps, drains to retained areas, deck sumps, aluminium window drain holes and shower trays.

Mr Bayley, a quantity surveyor, mediator and facilitator, who has been involved in disputes on $6.5 billion worth of construction work in the past decade, has also sent his analysis to the Construction Liaison Group, a body representing a wide cross-section of the building, contracting and professional trades which want to help solve the crisis.

Construction Liaison Group chair John Pfahlert said this year the issue of water damage to modern housing demanded industry attention "at the highest level".