Owners face paying for leak rulings

By FRANCESCA MOLD

Homeowners caught up in the leaky building crisis will have to pay $200 to use the Government's new mediation service, which is designed to settle disputes about who is responsible for the repair bills.

A team of Government ministers have been working on a plan to resolve the rotting homes problem that could involve repairs costing up to $2.4 billion.

A part of the solution package is the new mediation and adjudication service announced by Deputy Prime Minister Michael Cullen last month.

A website and toll-free phone number have been set up so that homeowners can apply to take part in the disputes resolution process.

The Government will today release more detail about how the mediation and adjudication service will work, including the costs for homeowners.

The Herald understands homeowners will pay a fee of $200 to use the mediation arm of the disputes service.

If mediation fails or if one of the parties involved refuses to take part, the homeowner can pay a further $200 to use the adjudication service.

Adjudication would be compulsory for all those involved, including the builder or property developer.

If the case goes straight to adjudication without going through mediation, homeowners will pay a $400 fee.

The judge handling the case will have the power to award costs when issuing a decision, so homeowners could be reimbursed.

The Government hopes the first mediations will be under way by Christmas. Legislation to set up the disputes resolution process will be added to the existing Construction Contracts Bill, which will be passed in the next few weeks.

Homeowners can register with the new service by ringing 0800 116-926 or by using the website www.weathertightness.govt.nz

Their case will be assessed and if it is accepted as a genuine "leaky building" case, the homeowners concerned will be asked if they want to take part in mediation.

Internal Affairs has received 151 registrations from homeowners with leaky building problems.

About half of the 541 calls to the toll-free number have come from the Greater Auckland region.

A select committee will also begin hearing submissions from homeowners at the Lakeside Convention Centre in Auckland on Friday, as part of its official inquiry into leaky building syndrome.

It has already had confidential briefings from the Government-appointed Building Industry Authority and Internal Affairs Minister George Hawkins.

National MP Wayne Mapp said the authority should give public evidence to the inquiry because it needed to be held accountable for its role in the fiasco.

"By not making a submission, the authority is avoiding public scrutiny of their actions."

Dr Mapp said the public wanted to know what the authority had known about the rotting homes crisis, when they knew, who they told and how they intend to fix the problem.

A member of the Government administration select committee, United Future MP Murray Smith, said he believed lax standards would be found to be responsible for the crisis.

He had not yet read the 230 submissions made to the committee but said there were three main causes of the problem: faulty analysis of the reliability of new cladding systems by industry organisations and territorial authorities; inadequate training and experience among builders; and casual, infrequent inspection of work by building certifiers and councils.

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

Further reading
Feature: Leaky buildings

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