KEY POINTS:
Owners of a large resort-style Mt Maunganui apartment complex facing an $8 million leaky building repair bill say they have discovered a string of serious defects.
Richard Kinloch, who owns a unit in the seaside Cutters Cove Resort Apartments on Marine Parade, said owners thought they were buying into a luxurious complex.
But as repairs began, they uncovered problems far more serious than weathertightness, said Mr Kinloch, who is also chairman of the body corporate.
"It became apparent very early on in the building upgrade that apart from weathertightness problems, there were other significant problems associated with the building's design, construction and certification," he said.
"Once work started it became obvious that this was not just another leaky building. There were serious problems associated with fire rating, acoustics, structural bracing and drainage, all of which will have to be addressed to get a code compliance certificate when the building upgrade is completed."
An inadequate stormwater system which overflows during heavy downpours, defective roofs and lack of fire hazard compliance in the units are just some of the issues owners will need to fix.
"Owners assumed their new apartments were top-of-the-line, that they had bought architecturally designed places that had been built to high-quality specifications. This was certainly how they were marketed," Mr Kinloch said.
Instead, they found sub-standard design, consent, construction and project management.
Owners are halfway through repair work and have lodged a claim in the High Court at Tauranga, naming 20 defendants they say were associated with the development and construction.
These include Marlan Developments, Sharon Hollis of developer Danegeld (in liquidation), building material manufacturer and supplier James Hardie NZ, Waterproofing Systems and engineers Connell Wagner.
Mr Kinloch said problems emerged quickly.
"From initial occupancy in September 2001 problems became evident, yet the developers' and builders' response was to apply a further layer of silicone sealant. This was a Band-Aid that did not address the underlying problems.
"Apart from the financial imposition of the building upgrade, apartment owners have suffered consequential losses such as costs of alternative accommodation, moving and storage costs, lost rental income, loss of return from investments and cost of borrowing.
"There are ongoing concerns about owners' physical and mental health. They are experiencing a huge amount of anger, frustration and resentment as well as inconvenience and loss of enjoyment.
"There is a strong sense of injustice created by the perception that the system has let the owners down and that although owners are the victims, they have to prove wrongdoing," he said.
Lawyer Paul Grimshaw said the units were first estimated to cost just $2 million to fix.
"Yet when you open up something like this, it has burgeoned out to $8 million. As they got into the work, they discovered problems were greater than they thought. So it's a good example of why people should always repair first."
Owners would have claimed just $2 million in court pre-repair, then be horrified to find the bill much higher, he said.
CUTTERS COVE
* A 39-unit leaky beachfront project with tennis, gym, sauna and pool areas.
* Repairs first estimated to cost $2 million - now expected to cost $8 million.
