Case study 1

The owner of a new home with an enclosed deck over ground floor rooms uncovers some serious problems.

In 2000 Peter bought a partially built family home from a developer. The house had a pitched roof and appeared to be well designed. However, it did have an enclosed deck over ground floor rooms – a definite weathertightness risk.

Unknown to Peter, the builder’s financial position was shaky. Payments to subcontractors were erratic and the quality of their work slipped. Nevertheless a Code Compliance Certificate was issued by the council and Peter made his final payment.

The developer fixed a number of plumbing and other maintenance issues during the first year of occupancy. After 18 months though, the family noticed swollen skirtings and stains on the dining room ceiling.

Staining on the ceiling

Worse, patches of carpet were damp and smelt musty. See Backgound to the problem.

Peter decided to ask for a Weathertight Homes Resolution Service (WHRS) report.  This revealed serious problems with the house and a claim was made to the WHRS.

One particularly worrying discovery was the presence of Stachybotrys mould in the children’s bedroom cupboard. Aware of the potential health risk with this type of fungus, Peter sealed-up the cupboard and moved to get repairs done as soon as possible.

Damage in the children's bedroom cupboard

He prepared his case for adjudication under the resolution process, spending $60,000 on legal and experts’ reports. On legal advice the case went to mediation but no agreement was reached.

Peter has now decided to carry out temporary fixes to protect his family’s health and minimise further damage. He is currently working with a building project management company to complete the full repair job at an estimated cost of $250,000 excluding legal and expert costs. He then intends following through with the adjudication process. He believes this will allow him to:

• Accurately determine and record the extent of the damage.
• Establish the cause and the parties liable for the leaks.
• Record the true costs of repairs.

Peter expects to spend a further $30,000 to $50,000 on legal and expert advice. He believes this preparation, along with a true costing of the repairs, will place him in a strong position when the case finally goes to adjudication.

Peter feels he is now in control of his situation.