In 2002, the Government's response to the crisis was to provide homeowners with a cheap and speedy alternative to the courts - the Weathertight Homes Resolution Service. But as hard as the service has tried, it has been hamstrung by its hastily conceived legislation.
Homeowners must prove claims - sometimes years after their house was built - against developers, builders, architects and contractors who liquidate their companies, councils with high-powered lawyers and uninsured certifiers. Owners cannot claim for legal costs or for defects other than those caused by external leaks.
Court action is just as cumbersome and more expensive.
Lawyers say owners who go to mediation are getting an average 44 per cent of what they claim.
One owner who agreed to confidential mediation with the weathertight service came out feeling "screwed".
"I endured a 14-hour mediation with the past owner-builder and his lawyer, the council's legal representative and council inspector, two solicitors representing the council, the builder-framer and his lawyer, a building inspector for the builder and the designer of the house - none of whom wanted to put it right. I was unrepresented.
"The repair bill on my house was estimated to be around $175,000. I am presently trying to raise $125,000 to complete the repairs started with the funds from the pathetic settlement received on that day.
"I still have water dripping from the lounge ceiling, a bedroom upstairs supported by a rotten beam, a wet, rotting door frame, a garage that floods during rain and stachybotris in the ceiling.
"I have been diagnosed with chronic obstructive respiratory disease, giving me breathing problems never suffered before, and have constant recurring headaches.
"Still my house is far from repaired."
Service fails to satisfy leaky home owners
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