MOE head of education infrastructure service Kim Shannon said that confidential settlements were reached with each of the four companies in 2015.
"Legal action is always a last resort for us," Shannon said.
"However, we do expect construction companies to stand behind their workmanship, and if necessary be held accountable for negligent building practices."
The Ministry looked at fully remediating the school, however, with an estimated cost of $8m, they considered a new facility was better value for money.
When contacted by the Chronicle, a member of staff at W & W Construction said that director Glenn Wadsworth had no comment to make.
Ken Saunders, a director at Saunders Stevenson Ltd said "we're not allowed to talk about that".
Development of the school building was led by the Taihape Area School board of trustees, but that process has since been changed by the Ministry.
They set up the Education Infrastructure Service Group in 2013, which works with schools to deliver complex property projects.
This includes a ministry delivery manager who oversees the project with access to a range of specialists including architects with experience in education.
Taihape Area School broke the news of its demolition and rebuild via a newsletter, on the school app and in a Facebook post.
Principal Richard McMillan said planning was in the early stages and they are not yet sure how the rebuild will affect students and staff.
"Reaction generally has been one of shock, but people have been very supportive and appreciate the trauma that it's causing people at school," he said.
"We've decided we're just going to get on with it, no finger pointing at architects or whatever."
All of the school's classrooms and facilities are in the one main building, except for a multi-function centre which was built at the same time and will not be demolished.