Many multi-unit buildings in New Zealand – especially those constructed between the 1990s and early 2000s – are facing increasing challenges related to building defects, including weathertightness issues, structural problems, and failing building systems. For bodies corporate, identifying and addressing these issues early is critical to protecting property values, managing risk, and ensuring compliance with the law.

 

What Are Building Defects?

A building defect is any element of the building that fails to meet the required performance or code standards. Common examples in NZ body corporate buildings include:

• Leaky cladding (e.g. monolithic plaster systems)
• Inadequate or missing fire separations between units
• Structural cracking or movement
• Faulty plumbing or waterproofing
• Poor ventilation or insulation

These defects may not always be obvious, and many only become apparent years after construction, which is why a proactive approach is vital.

 

Why This Matters for Bodies Corporate

Defects affecting common property are the legal responsibility of the body corporate to repair. Ignoring or delaying action can lead to:

• Safety risks to residents
• Further deterioration and higher repair costs
• Loss of insurance coverage or increased premiums
• Decreased unit values and tenant demand
• Potential legal liability for the committee or owners

Even minor-looking issues (e.g. small water stains or drafty windows) can be signs of larger underlying problems that need investigation.

 

Time Limits for Legal Action

New Zealand law imposes strict limitation periods for taking legal action against developers, builders, and councils:

• 6 years from the date of discovery (for contract/negligence claims)
• 10 years long-stop from the date of construction (under the Building Act)

This means that many buildings constructed before 2015 may soon be, or are already, outside the legal timeframe to make a claim, even if the defects are just now being discovered.

If your building is under 10 years old or had major renovations recently, it is critical to seek legal advice promptly if defects are suspected.

 

Steps to Take If You Suspect Defects

1. Engage a Building Surveyor

   A qualified surveyor can conduct an independent condition assessment and identify any non-compliant or failing elements. This is often the first step before approaching legal counsel or insurers.
   
   

2. Review Your LTMP and Maintenance History

   Compare the defect areas with your long-term maintenance plan (LTMP). This helps distinguish between natural wear and tear and genuine defects.
   
   

3. Consult Legal Experts Early

   If you suspect developer or contractor liability, seek advice on whether you have grounds for a Weathertight Homes Resolution Service (WHRS) claim or private legal proceedings.
   
   

4. Communicate Transparently with Owners

   Transparency avoids surprises. Outline the findings, estimated costs, and options (e.g. litigation, settlement, remediation) through special general meetings (SGMs) or newsletters.
   
   

5. Budget for Investigation and Repairs

   Even if litigation is underway, initial funds may be needed to scope and contain damage. This could involve a special levy or using the long-term maintenance fund if permitted.

 

Funding Options for Remediation

• Special Levies: Often the fastest but can be burdensome for owners.
• Loans to the Body Corporate: These are becoming more common in New Zealand, especially for large-scale remediation.
• Insurance (if applicable): Some policies cover certain defect types—but this is rare and usually limited to recent workmanship.

 

Building defects are a serious but manageable challenge. With early detection, expert advice, and collective decision-making, bodies corporate can protect their assets and ensure long-term value for all owners.

 

Need Help Navigating Defects or Repairs?

We work closely with surveyors, lawyers, and remediation project managers to guide bodies corporate through every step—from initial investigation to completed repair. Get in touch with our Bodies Corporate team to discuss your building’s situation and your options.