The Journal Dunedin played host to NZIBS' 25th Anniversary

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The Journal Dunedin played host to NZIBS' 25th Anniversary
NZ INSTITUTE OF BUILDING SURVEYORS JOURNAL

                                                               ISSUE 3 OCTOBER 2019

 The Journal
Dunedin played host to
NZIBS’ 25th Anniversary
Fittingly, the country’s oldest university city
was also where the Institute was established.

IN THIS ISSUE

NZIBS’ 25th Conference   Investigating an   Resolving old historic        Getting the lay of the land
a success                unknown defect     CCC
The Journal Dunedin played host to NZIBS' 25th Anniversary
CONTENTS                                                                                                               FROM THE PRESIDENT

                                                                     NZ INSTITUTE OF BUILDING SURVEYORS JOURNAL

                                                                    ISSUE 3 OCTOBER 2019

      The Journal
     Dunedin plays host to
     NZIBS’ 25th anniversary
     The Institute, established in 1994, continues
     to play a lead role in both the property and
     construction industries
                                                                                                                                              NZIBS PRESIDENT
                                                                                                                                              Rory Crosbie

     IN THIS ISSUE

     NZIBS’ 25th Conference   Investigating an   Resolving old historic        Getting the lay of the land
     a success                unknown defect     CCC

  NZIBS’ 25th Conference a success...................2

  Investigating an unknown defect.....................3                                                           NZIBS’ 25th
  Give care and consideration to facts...............4

  rawMAT is the only pre-hydrated Bentonite
  system available world-wide.............................6
                                                                                                                  Conference
  Healthy homes and pre-purchase
  inspections...............................................................8

  Resolving old historical code
                                                                                                                  a success
  compliance certificates.................................... 10                                                  A good time was had at the 25th       are carefully and sensitively changing
                                                                                                                  Anniversary Conference in Dunedin.    the face of local heritage building
  Proudly celebrating 25 years.......................... 12                                                       It was great to see a large turnout   stock.
  Getting the lay of the land ............................ 14
                                                                                                                  at the various events which took
                                                                                                                  place during the event.               A quick site tour of St Paul’s
  Thank you to our sponsors.............................. 14
                                                                                                                                                        Cathedral to view the many stained-
                                                                                                                  The conference was opened by          glass windows and to discuss the
                                                                                                                  innovator of the year Ian Taylor.     maintenance management of the
                                                                                                                  Members were virtually blown          external stone façade, followed
                                                                                                                  away by Ian’s story on how a small    by a great evening enjoyed at the
                                                                                                                  Dunedin company has taken on          gala dinner over at the Forsyth Barr
                                                                                                                  the world. He reminded us that        Stadium.
     CONTACTS                                                                                                     the ingredients for success remain
                                                                                                                  unchanged. Trust, and can-do          We kicked into it again early Saturday
  President: Rory Crosbie                                                                                         attitude have realised huge success   morning for four well attended
                                                                                                                  for Ian’s companies.                  workshops, where some of us learned
  Secretary: Noeline Clark
                                                                                                                                                        about prefabricated “mushroom pods”.
  NZIBS Contact: New Zealand Institute                                                                            Matt Allen from RCP provided us       Following the members AGM, the new
  of Building Surveyors,                                                                                          with an overview of the challenges    2019/2020 Executive met and for the
  PO Box 1283, Dunedin, 9045                                                                                      to be managed to deliver the new      first time in the Institute’s history,
  Phone: 0800 113 400                                                                                             Dunedin Hospital, a potential         the Executive elected a female Vice
                                                                                                                  8 to 10 year project. Morrison        President, Heather Crilly.
  Email: secretary@buildingsurveyors.co.nz
                                                                                                                  Kent Lawyer, Michael Wolff,
  Layout: Heysmartypants Design                                                                                   provided us with a whistle stop       I look forward to working with Heather
  www.heysmartypants.co.nz                                                                                        update on current legal topics        and the new Executive over the next
                                                                                                                  and Chartered Building Surveyor,      12 months to deliver on the strategic
  Editor: Robin Miller
                                                                                                                  Christian German, talked about        vision. Work has already started on
  Newsletter Disclaimer                                                                                                                                 the plans for the 2020 Conference,
                                                                                                                  the challenges he and his Dunedin
  The information in any NZIBS newsletter is for                                                                                                        which will take place in the Hilton in
  general use only. The information has been provided                                                             University Estates team face trying
  by NZIBS and by third parties including NZIBS                                                                   to stay ahead in the competitive      Auckland on September 24-26. The
  members. While NZIBS has endeavoured to provide
                                                                                                                  education market by maintaining       last Auckland conference took place
  accurate information, neither NZIBS nor the third                                                                                                     way back in 2003.
  parties provide any guarantees regarding the                                                                    and upgrading their existing
  correctness, currency, completeness or suitability of                                                           building stock, in line with the
  the information for any particular purpose. It should                                                                                                 So, what is planned for the year
                                                                                                                  universities’ strategic objectives.
  not be relied on in place of appropriate specific advice                                                                                              ahead? It is clear from conversations
  or verification. Opinions provided by third parties on                                                                                                with various members at the above
  any matter do not necessarily represent the opinion                                                             During the afternoon session, we
  or policy of NZIBS.                                                                                             heard from three wise locals; the     conference that our members continue
                                                                                                                  developer, engineer developer and     to work for an even greater cross-
                                                                                                                  conservation advisor on how they      section of clients across the country.
2 ISSUE 3 OCTOBER 2019
The Journal Dunedin played host to NZIBS' 25th Anniversary
INDUSTRY UPDATE
Our members are involved with land
development, due diligence during
real estate transactions, the provision
of technical expertise on a range of
remediation projects and are now
assisting on the large infrastructure
                                                                           NOEL JELLYMAN
projects underway across the country.                                      Registered Building Surveyor
Larger clients with portfolios of property
are using our members to complete
stock condition surveys and assist
with the development of maintenance
strategies and plans. Disputes continue,
keeping our members busy as expert
witnesses. This leads to our members
acting as experts in court on contract        Investigating an
                                              unknown defect
disputes, earthquake insurance and
product claims, and defective building
work claims. Our forensic skill set
continues to set us apart. Our ability to
collect evidence on defective buildings
                                              Engaged to inspect a building and carry out a Building Envelope Condition
and during the remediation of our             report, I came across a defect that I had not seen before.
existing building stock is well recognised.
                                              The roof was a 100m²
On the latter, we are working closely         Butynol Membrane over
with other project disciplines such           Plywood substrate – Non
as structural, geotechnical and fire          trafficable area. The
engineers, architects and quantity            plywood had been joined
surveyors in the delivery of many             using a groove in each
complex projects. I was intrigued to hear     sheet with a uPVC biscuit.
that some of our members are working          Thermal movement in
with bridge engineers in the condition        the uPVC had pushed the
assessment of bridges at the end of their     uPVC jointer through the
expected life while others are working        membrane at most sheet
closely with fire engineers.                  joins and on both sides of
                                              the roof.
So, the variety of service our members
are currently offering across a               When uPVC expands and
spectrum of sectors is astounding but         shrinks on a cyclical daily
not surprising given our skill set and        basis, it moves in the
professional approach our members are         same direction which is the direction with least resistance. It moves like a
obliged to take in the delivery of these      caterpillar. The daily movement is so small it is undetectable. Over a period
services.                                     of 10 years or more, however, it becomes pronounced and obvious, as seen
                                              below.
In our 2020 March Training Day event
(to be held at the Villa Maria in Auckland    In this case scenario, at
on March 14), we aim to take a re-look        this joint, the membrane
at the remediation of buildings, mainly       had been repaired once
commercial. Next year’s MTD’s theme           but the uPVC had pushed
will be Remediation - what’s new? The         through again.
many challenges will be explored, from
                                              If a single screw had been
the typical types of defects, contractor
                                              placed to lock the uPVC
engagement, technical complexities and
                                              prior to the repair, would
solutions required to ensure compliance       that have prevented the
is achieved, and the financial challenges     defect recurring?
imposed upon the building owners in
their drive to return their properties to a   Should a full re-roof have
code compliant asset.                         been undertaken?

What’s clear is there are many                Would the patch repair
opportunities for the Institute over the      have been sufficient had
next 25 years of its existence. And it        a single screw been installed through the joint to lock the uPVC biscuit in
looks like our members will be busy too.      place?
                                                                                                         ISSUE 3 OCTOBER 2019 3
The Journal Dunedin played host to NZIBS' 25th Anniversary
INDUSTRY UPDATE

Give care and
consideration to facts
Recently I have had three separate client files where builders had been
engaged on labour-only contracts or carpentry labour-only.
Half-way through each of the new          c)	in accordance with the drawings          Contractor of the work undertaken
housing project, the contracts for one        and specifications,                      and the relative cost.
reason or another, were cancelled
by owner project managers and             d)	in accordance with building           There can be no doubt that if a
the carpenters locked out from the            consent,                              Contractor is notified in writing that
site. Experts were then brought into                                                there is a defect, he has an obligation
                                          e)	using materials that are fit for      under the contract to fix it.
inspect the works and schedules of
                                              purpose,
alleged defects prepared. Inevitably, a
                                                                                    The Contractor also has the right to
stalemate between the parties arose       f) using materials that are new,          reasonable time to undertake the
and the matter went to Adjudication
                                                                                    remedial works.
under the Construction Contracts          g)	in accordance with all laws and
Act 2002 or to a Judicial Settlement          legal requirements.                   When assessing building works that
Conference or court case.                                                           are incomplete as opposed to alleged
                                          NZS 3910                                  defects, in my opinion it is important
My involvement in such cases has led
                                          Removal and Making Good                   to be careful to also differentiate
me to look at case law around:
                                                                                    between what is “a defect” and
• When is a defect actually a defect,     a)	The Engineer may at any time          what may be “incomplete works”. It
                                              prior to the expiry of the Defects    is also important to identify if the
•	When has a carpenter an                    Notification Period, by notice in     Contractor, under the terms of the
   obligation to remediate, or is the         writing, instruct the Contractor to   contract, has rights and obligations
   work simply incomplete?                    remove and re-execute or to make      to remediate a particular element of
                                              good any work which, in respect of    the works.
Often there will be a mix of defective        materials or workmanship, is not
works that require remediation,               in accordance with the Contract.      “Incomplete building works” are
in addition to other items of work            The Contractor shall comply with      not “defective building works”. On
that should properly be described as                                                a Charge Up Labour Contract, they
                                              the instruction at their own cost.
“incomplete works”.                                                                 are works the owner was going
                                          b)	If the Contractor fails to carry      to need to pay for in any event. If
Regarding defective works, in most                                                  “incomplete works” are confused in
                                              out any work instructed under a)
contracts there is an obligation                                                    with the defects, then this distorts
                                              (above) within any time stated
or entitlement in respect of the                                                    or exacerbates the scope of the
                                              in the notice or other reasonable
Contractor that has caused the                                                      defects and inflates the amount
                                              time, the Engineer may, (after
defect, which allows that Contractor                                                of compensation sought to put
                                              giving five working days further
to carry out the necessary remedial                                                 the owner back in the position
                                              written notice to the Contractor
work, albeit at his own cost.                                                       they would have been in, but for
                                              stating that it is given under the
                                              clause), direct others to undertake   a Contractor’s mistakes and/or
Certified Builders Contract                   the work.                             omissions.
Typical relevant contract clause:
                                          c)	The reasonable cost of the work       Occasionally, building projects
RMB’s Warranties
                                              undertaken by others under b)         become derailed because the
The RMB warrants that works it is             (above) shall be recoverable          relationship between the owner/
responsible for will be carried out:          by the Principal from the             project manager and the builder or
                                              Contractor. As soon as practicable    labour-only contactor breaks down.
a) in a tradesman-like manner,                                                      As a result, the work grinds to a halt
                                              after completion of the work,
                                              the Engineer shall notify the         and the parties reach a stalemate.
b) with reasonable skill and care,

4 ISSUE 3 OCTOBER 2019
The Journal Dunedin played host to NZIBS' 25th Anniversary
NZ INSTITUTE OF BUILDING SURVEYORS JOURNAL

The follow-on is usually a claim from
the builder for the money he is owed,
then a counter claim from the owner
for alleged defective works. Owners
tend to terminate the contract or
withhold payment based on alleged
defects in workmanship or materials;
however, the conceptual difficulty
the owners may face is that if the
building work is “incomplete”, then it
cannot yet be “defective works”. How
could the building works be defective
when the builder could have, and
presumably would have, completed it
to a satisfactory standard were it not
for the dispute?

There have been judgments that
focus on this matter, which are
summarised in the 2016 judgement
of G.M. Harrison in the Waitakere
District Court:

Tugage v West End Painters Ltd.

(as held by the High Court)

In particular, in Tugage v West End      the “cost of cure must be reasonable         facts. It is appropriate to identify
Painters Ltd., the judge said:           to be the appropriate measure.” The          defects and, if it is appropriate, also
                                         Court referred to the Australian case        to be fair and honest in terms of
“The standard of workmanship is                                                       stating what parts of the works are
                                         of Bellgrove v Ellridge where that
judged at the completion of the                                                       better designated as “incomplete” or
                                         Court held the work must not only be
project, not at the time when the                                                     the responsibility of the other party.
                                         “necessary to produce conformity”,
owner prematurely brings it to
                                         it must also “be a reasonable course
an end, and prevents the builder
                                         to adopt”.
from achieving the standard of
workmanship that he is capable of.”      The Court in Marlborough District
In the event a dispute ripens over the   Court v Altimarloch Joint Venture
scope of defective works and goes on     Limited went on to consider the
to a form of dispute resolution, then    case of Ruxley Electronics and
an award of compensatory damages         Construction Limited v Forsyth
for breach of contract is designed to    which was a building contract case
place the plaintiff in the position he   where the cure measurement was
or she would have been in had the        disproportionate to the benefit to be
contract not been performed. The         obtained. The Court considered that
                                                                                        Noel Jellyman
assessment of damages is essentially     the reasonableness of cost of cure is
                                                                                        Noel is a Registered Building Surveyor,
a statement of fact, i.e. the loss       then a necessary test of whether it is
                                                                                        a member of the Adjudication
actually and reasonably suffered by      an appropriate measure of damages.             Association of New Zealand – of
the plaintiff.                                                                          which he is Past President – and
                                         Ultimately, the cost of reinstatement
                                                                                        a Society of Construction Law
Marlborough District Court v             to produce conformity with the                 member. His decades-long experience
Altimarloch Joint Venture Limited        contract must be reasonable.                   allows him to carry out a wide
                                                                                        range of professional assignments
The Supreme Court in Marlborough         In summary, when engaged as                    including structural design work,
District Court v Altimarloch Joint       professionals, it is important to be           structural inspections, geotechnical
Venture Limited considered whether       independent and impartial when                 investigations, dispute resolution
the cost of cure was reasonable          engaged to carry out an inspection             work, expert witness investigation
to achieve conformity with the           of alleged defective works. Careful            and reports.
contract. The Court considered that      consideration should be given to the

                                                                                                        ISSUE 3 OCTOBER 2019 5
The Journal Dunedin played host to NZIBS' 25th Anniversary
INDUSTRY UPDATE

                         WATERPROOFING SYSTEMS,
                         TECHNICAL DIRECTOR
                         John Stallard

rawMAT is the only pre-hydrated
Bentonite system available world-wide
The unique and significant feature of rawMAT Bentonite is its initial
pre-hydration occurs under factory-controlled conditions and is a fully
waterproof Bentonite membrane in supplied roll form.

6 ISSUE 3 OCTOBER 2019
The Journal Dunedin played host to NZIBS' 25th Anniversary
NZ INSTITUTE OF BUILDING SURVEYORS JOURNAL

Other features of rawMAT:                                               maintaining water tightness. In the picture above on page
                                                                        6 is the McCurdy truck pits; once the pumps come off,
•	it’s the only system which has direct Bentonite to                   there is a constant head of water under test. The result is
   Bentonite lapping,                                                   that the truck pits remained 100 per cent watertight.
•	it’s the only Bentonite system which can directly
                                                                        When selecting a tanking membrane system, there is still
   migrate into the cementitious substrate to become
                                                                        no system which can cover all circumstances. Each job
   part of the substrate, preventing any chance of water
                                                                        should be evaluated carefully, and the selection made on
   migration vertically.
                                                                        an informed decision.

                                                                        To assist with this decision-making work, view the
                                                                        levels of tanking guide below. If you need assistance, please
                                                                        don’t hesitate to contact Waterproofing Systems
                                                                        NZ Ltd on (09) 579 1460, info@waterproofing.co.nz, or
                                                                        visit www.waterproofing.co.nz.

rawMAT Detail b-RAW00 Lap Joint
One of the most notable projects where rawMAT Bentonite
has been used is Stage One of the Britomart tunnel. The
tunnel is 300 metres long x 45 metres wide x 13 metres
deep, with a constant 7 metres head of water with tidal
pressure twice each day. The project is now 17-years-old
and it has been a true reflection of how exceptionally good
the rawMAT system is.

It is really important when considering rawMAT bentonite
that it is designed for continuously damp, wet situations.
This ensures that the rawMAT bentonite remains fully
hydrated and the expansion pressure remains in force is                 Below ground tanking membranes levels of tanking

One of the most notable projects where rawMAT Bentonite has been used is Stage One of the Britomart tunnel.

                                                                                                                 ISSUE 3 OCTOBER 2019 7
The Journal Dunedin played host to NZIBS' 25th Anniversary
INDUSTRY UPDATE

                              DARIN DEVANNY
                              Registered Building Surveyor

Healthy homes and
pre-purchase inspections
It’s logical to think that the average home buyer would expect that
a house they are buying reaches the Healthy Homes Standards at a
minimum.
And if they are not at that standard,
they would like to know that
they don’t, so they know what
improvements to make before
they buy. If the Healthy Homes
Standards are a minimum standard
for tenancies, then surely that is the
expected minimum standard for all
New Zealand Houses.

Additionally, a property pre-purchase
inspector may not know whether the
house is to be tenanted or not. So, it
makes sense that the Healthy Homes
standards – heating, insulation,
draughtiness, ventilation, drainage
and moisture matters – are assessed
by a pre-purchase inspector to ensure
they are likely to meet the standards.

Otherwise home buyers may decide          Expectations of pre-purchase inspections have changed over the last decade.
to rent out their homes, then only to     Pre 2010, a pre-purchase inspection report typically involved a brief report with
find it doesn’t meet the standards.       perhaps a few scattered photos that showed small details of the general aspects
                                          such as the roof, the exterior walls and internal rooms.
Only the insulation standards are
currently required to be met. From        The site inspection involved a walkthrough visual inspection only. However,
July 2021, all new and renewed            today, it is much more than just a visual inspection. The process will typically
tenancies will need to comply with        include much more specific testing, such as a floor-levels assessment to
all the prescribed standards. From        check for settlement, moisture scanning of risk areas that may be affected by
July 2024, all tenancies must comply.     dampness in the walls, more rigorous testing of plumbing fixtures to assess for

8 ISSUE 3 OCTOBER 2019
The Journal Dunedin played host to NZIBS' 25th Anniversary
NZ INSTITUTE OF BUILDING SURVEYORS JOURNAL

leaks in showers for example – which     significant potential defect) that              occurring and consider if invasive
have become problematic. They            “ought to have been identified by               testing is the next best step.
also outline risks for the presence of   a reasonable building surveyor” is
hazardous materials such as asbestos     substantial. Similarly, not identifying         Pre-purchase inspection reports are
and lead paint.                          the potential extent of an issue is as          not likely to become much better
                                         much of a risk for an inspector. The            unless there is a standard that
Money lenders have become much           amount of pre-purchase inspection               requires suitably trained building
more cautious on leaky buildings         companies operating across New                  surveyors to carry out such reports.
and, in the earthquake affected areas,   Zealand have grown substantially                Liability on pre-purchase inspectors
they are concerned about cracks          over the last decade. The standard              is not likely to become any less until
in the foundation. Pre-purchase          of reports vary enormously as there             there is a constant expectation on
inspectors must be very careful when     is no regulations on what a report              what a report shall cover and what
assessing and commenting on the          should include or who should be                 an inspector ought to have done
condition of foundations, particularly   completing them. This is a big                  on site to complete a reasonable
ones that show signs of settlement       issue because the expectations                  assessment on the property.
and damage such as cracks. Even if       of homebuyers who commission
the damage is minor, it could easily                                                     “NZS 3604:2005 Residential
                                         such reports are widely varied and
become much worse.                                                                       Inspection” does not adequately spell
                                         sometimes skewed.
                                                                                         out the necessary steps to complete
Leaky buildings have carried similar     Pre-purchase reports often comprise             a robust and comprehensive pre-
risks for the last two decades           pages of moisture scanning and infra-           purchase inspection report. The
and that risk from a pre-purchase        red images, which can seemingly                 NZIBS Executive have been working
inspector’s point of view is still       identify moisture inside the walls.             on a reporting procedure for its
significant. Possibly even more risky    Experienced building surveyors know             members to provide pre-purchase
than before where new “meshed            they can’t, and such information                residential inspections. It has been a
coating applications” have been          can be very misleading. But it has              long-running project but is expected
applied over older existing systems      become the expectation of money                 to be available to members about
which cover up the issues that lay       lenders that such information is                mid-2020. It will provide procedures
beneath.                                 included within reports. We know                for members to follow in order to
                                         that that the best way to identify              maintain consistency and provide
Pre-purchase inspections are known                                                       comprehensive condition reports on
                                         buildings that are likely to leak is to
to be a risky and litigious field to                                                     residential dwellings subject being
                                         weigh up the risks and decide how
provide services in. The risk of not                                                     sold.
                                         much likelihood there is of leaks
identifying significant defects (or

                                                                                                          ISSUE 3 OCTOBER 2019 9
The Journal Dunedin played host to NZIBS' 25th Anniversary
IN THE LOOP

Resolving old historical code
compliance certificates
It was when the 1991 Building Act came into existence (enacted in
1993), that the new building consent regime came into effect. This is
the time when what used to be called ‘building permits’ changed to
‘building consents’.
While it was intended under the         these matters, or they could possibly     The owner could also face the
1991 Act that all building consents     see difficulties in keeping their         requirement and costs of engaging
would be issued a Code Compliance       insurance cover for the building. This    a registered building surveyor to
Certificate (CCC), no timeframes        leaves many owners distressed and in      provide a full report on the present
were ever given to complete the CCC.    a very vulnerable position.               state of the building project, which
Therefore, under the 1991 Building                                                the assessment could identify costly
Act regime, there are now thousands     Under the NZ Building Act 2004, the       remedial work. This in turn is not
of old building consents that have      requirement for Building Consent          favourable to them due to extra costs
never been issued their CCC’s. Today    Authorities (BCA) is at the expiry of     of remedial works before a BCA can
it is becoming an issue for property    two years from the date a building        even consider and be satisfied that
owners when it comes time to sell       consent was granted, the BCA must         all works are compliant with the
their properties. Many properties       decide on whether to issue a CCC          consented plans.
constructed around the early 2000’s     (under Section 95 of the BA2004).
with no CCC’s were never picked up      If a final inspection has not been        All BCA’s have their own policy or
in the Sale and Purchase Agreement,     undertaken, then the BCA will             guidelines on how to manage and
as it was never considered by some      undertake a final onsite inspection       process old outstanding building
legal advisors as an important aspect   and from there they must decide if        consents. Their view as to what they
of the transaction.                     all works comply with the consented       consider old can vary, but typically if
                                        plans. If not, then a letter is written   an outstanding consent is more than
Today we are hearing more insurance     to the property owner, under Section      five-years-old, then B2 – durability
and bank providers wanting to know      95a (BA2004), stating the refusal and     code starts to become a potential
if CCC’s have been granted for all      the reasons for the refusal.              factor in compliance and decision
building consents on their clients’                                               making.
property before they will even          As noted above, it is not until the
consider providing insurance cover,     owner decides to sell the property        When the BCA carries out a final
loans, etc. There are now instances     that the consented works which            inspection of a consent (it may even
where insurance companies have          does not have a CCC becomes of            be a consent less than five-years-
become aware of properties that they    more concern; they are unable to          old) to determine if the works meet
have already insured where CCC’s        complete a sale, the purchaser has        the requirements of the consented
have not been issued. Consequently,     been advised that the bank will not       plans and specifications, there may
they have written to the property       loan, the insurance company will not      be a number of outstanding non-
owner advising them the issue of no     cover, and ultimately the owner faces     compliant issues. At this stage the
CCC and that they need to rectify       the risk of losing a sale.                BCA will then write a letter to the

10 ISSUE 3 OCTOBER 2019
NZ INSTITUTE OF BUILDING SURVEYORS JOURNAL

owner or agent of the owner under        No.2) and working closely with the            Ensure that you have a clear and
Section 95A of the BA 2004 listing       BCA.                                          robust agreement with your client
the non-complying areas.                                                               covering what will be included in the
                                         When carrying out a survey after              survey and what falls outside the
It is common when this letter is         a Section 95A letter has been                 scope of work. It is also a good idea
issued that the property owners          issued, the surveyor must cover all           to state in the terms and conditions
will engage a building surveyor          the points raised in the letter. The          that while every effort will be made
to review the BCA letter and seek        surveyor must also ensure that there          to achieve an acceptable outcome,
further advice. Once again, as I have    are no other areas that are non-              ultimately it is the BCA that has
mentioned before in earlier articles,    compliant which may have been                 the final say on whether a CCC is
NZIBS is held in high regard with        missed by the BCA at the time they            granted or refused, not the surveyor.
many of the BCA’s throughout the         carried out the inspection. This is due       However, by meeting an agreement
country and therefore they are           to most 95A letters stating that it is        with the BCA on the best path
willing to accept our input on these     “not limited to” the items that have          forward to achieving the issuing of a
types of matters.                        been listed.                                  CCC, then the outcome is more likely
                                                                                       to be just that.
It is also a good idea to fully          Once the survey has been completed
discuss with your clients that this      there will more than likely be the            As a last note to resolving an old
process may take some time to            requirement for remedial work to              outstanding building consent,
work through and that patience           be carried out. At this point, it is          should the BCA still refuse to grant
will be required. If there is a Sale     recommended that a meeting with               a CCC for whatever reason, then
and Purchase Agreement on their          the BCA be held to discuss the                the only pathway forward is to
property, getting a CCC may not be       remediation plan and ensure that              apply for a determination with the
achievable before the settlement         the BCA agrees with the pathway               Ministry of Business, Innovation
date, but this is something the client   forward and, once the remediation             and Employment (MBIE) which will
and their legal advisor can discuss.     work have been completed, the BCA             bind the two parties to whatever
It is best to be very up front with      will issue CCC. There is nothing worse        decision MBIE rules. Here again, we
your clients, so they know what is       than carrying out the repairs to then         as registered building surveyors with
happening before you begin the CCC       find out the BCA will not be in a             NZIBS will possibly be called on to
process.                                 position to grant a CCC for reasons           provide a report with outcomes of
                                         that would have been made clear               our findings for MBIE to assist them
The steps required range from            at the time of the meeting with the           in their decision-making and final
carrying out a weathertight survey       BCA to discuss the remediation.               ruling.
(commonly asked for by BCA’s
due to their limited specialist          Once all remedial work has been               It is also a good idea to fully discuss
equipment and time restrictions) to      carried out, then an application for          with your clients that this process
proving non-inspected areas that         a CCC (Form 6) can be made. It is             may take some time to work through
were missed during the building          highly likely – depending on the age          and that patience will be required.
of project are complying with the        of the consent – that a wavier to             If there is a Sale and Purchase
consented plans. There are also          B2 Durability backdating the time             Agreement on their property, getting
times when BCA’s have no records         that this building code clause starts         a CCC may not be achievable before
of the inspections on a building,        will be required. This date may be            the settlement date, but this is
perhaps caused when councils have        two or three months after the last            something the client and their legal
amalgamated, and the files have          inspection the BCA carried out or             advisor can discuss. It is best to be
become lost. In a situation like         when building work was practically            very up front with your clients, so
this, the best approach to proving       completed and the building was first          they know what is happening before
compliance is to take the COA            used. Again, this should be discussed         you begin the CCC process.
approach (as outlined in an earlier      when meeting with the BCA.
article on COA’s, NZIBS The Journal

                                                                                                       ISSUE 3 OCTOBER 2019 11
NIZBS UPDATE

Proudly celebrating
25 years
With a quarter of a century under their belt as one of the country’s
most professional industry bodies, the NZIBS celebrated their collective
efforts in the city where it all began.

16 ISSUE 3 OCTOBER 2019
NZ INSTITUTE OF BUILDING SURVEYORS JOURNAL

                     ISSUE 3 OCTOBER 2019 17
LEGAL UPDATE

Getting the lay of the land
It is not unusual to find yourself       be maintained. In practical terms,       land but also include resulting
working on a property or land in         provision must be made to maintain,      damage to buildings, which can
New Zealand with a contour which         preserve or uphold the status quo.       quickly become a significant issue.
may have an impact on the scope          What is required, legally, is not to
or nature of the job. When working       interfere with the land that is being    The requirements of the obligation
in these situations it is important to   modified in a way that adversely         are negative rather than positive; in
understand the legal rights between      affects the right of another to enjoy    other words, it is an obligation not
neighbours to ensure there are no        their own land (Brouwers v Street        to do something rather than to do
ongoing issues as a result of your       [NZCA]).                                 something. The best choice of action
actions or to ensure you do not                                                   will always be not to undertake any
unwilling expose yourself or your        Importantly in the building context,     work before taking the necessary
client to risk.                          the obligation does not extend to        steps to ensure that all surrounding
                                         a responsibility to provide support      issues have been well-thought-out.
For instance, you may be directed        for any non-natural use of the land,     Even where your clients have consent
to undertake (or manage) the             such as additional building works.       to undertake the project, checking
excavation of their section and the      This is important to consider when       in quickly at the beginning to raise
removal of an existing retaining wall.   you are completing work above a          any questions that may not have
Despite what many landowners may         retained site. It may be the existing    been considered can save thousands
believe, there is no concrete right to   reinforcement, while sufficient to       of dollars, countless hours, and
modify their own property without        support the status quo, will not         unnecessary stress down the road.
regard to how this may affect their      extend to additional stress, and
neighbours. In this circumstance         part of the job may be to complete
you could risk liability if you did      additional strengthening to
not inform your client of their          neighbouring reinforcing.
responsibility to neighbouring land.
                                         The obligation is not extinguished
Under the common law, a landowner        merely because your client has
has the right to “natural support”       obtained the necessary Council
and in return, the obligation not to     consents to undertake their project.
interfere with the “natural support”     The High Court discussed this issue
of any adjacent or subjacent             in Hawkes Bay Protein v Davidson in
                                                                                    Michael Wolff
neighbour. “Natural support” is a        2002 and held that “even if there [is]
                                                                                    Michael is a litigation law and dispute
legal term of art – this does not        compliance with planning permission,
                                                                                    resolution expert with extensive
mean that land must be left as-is,       such is not a defence”. The cost of        experience in dispute resolution,
however requires that whatever           damages where support is removed           construction and insurance litigation.
support was naturally occurring must     will relate not only to the affected

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18 ISSUE 3 OCTOBER 2019
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