Business Scoop
Network

Leaky Homes Package to drive up building costs

Press Release – Adina Thorn

Higher building costs will be an inevitable consequence of the government’s new leaky home financial assistance package says leading lawyer Adina Thorn. Leaky Homes Package to drive up building costs

Higher building costs will be an inevitable consequence of the government’s new leaky home financial assistance package says leading lawyer Adina Thorn.

This is because of the flow-on effect of tradespeople, architects, insurers and building product manufacturers being unable to cost-share with Councils when being forced to meet claims.

“What this means is that many in the building sector will be facing a higher level of costs irrespective of the merits of the claims being made against them, the wider implication of which will be to further drive up building costs across the board.

“The higher level of remedial works flowing from the package will boost demand for services as will the yet unknown amount of the variations in the work requirements when the amount of internal damage becomes apparent.

“Manufacturers in particular are likely to see their products and building systems subject to scrutiny in the courts and the package in no way absolves them of responsibility.

“It is likely that there will be a number of class actions taken against those groups based on the technical shortcomings of their products and the way in which they have been designed.”

She says those accepting the financial assistance package will still be entitled to pursue claims against those responsible including tradespeople, insurers and the manufacturers of building products.

She says owners of leaky homes should seek legal advice before signing up to the Financial Assistance Package to ensure they maintain their options in terms of the level of assistance they will achieve.

Content Sourced from scoop.co.nz
Original url