LexisNexis Pacific 1 Marcus Beveridge / Tina Hwang (Principal/ Solicitor) Queen City Law Building & Construction Law Topical Issues

LexisNexis Pacific 1

Marcus Beveridge / Tina Hwang (Principal/ Solicitor) Queen City Law

Building & Construction LawTopical Issues


Slide titleBACKGROUND

Building & Construction Law: Topical Issues

PART I: EARTHQUAKE STRENGTHENING ISSUES AND THE CONSTRUCTION SECTOR




PART II: REMEDIAL CONSTRUCTION WORKS FOR UNIT OWNERS WHO HAVE SETTLED A LEAKY BUILDING

CLAIM – THE COMMON ISSUES THAT ARISE




PART III: RESIDENTIAL DEVELOPMENTS AND COMMON ISSUES FOR PURCHASERS / DEVELOPERS FROM

BUYING OFF THE PLANS IN THIS ECONOMY




PART IV: GUARANTEES / WARRANTIES ON CONSTRUCTION WORKS AND ASSOCIATED COMMON

ISSUES




PART V:DOES SFO ACTION CONSTITUTE AN EXTENSION OF TIME?


Part I: Earthquake Strengthening

Background

• Building Act 2004- Dangerous Building- Earthquake Prone Building- Insanitary Building - “Moderate Earthquake”

• Earthquake Prone Buildings (EPB)

• 1976 policy changes




Auckland

• Earthquake-Prone, Dangerous & Insanitary Buildings Policy (2011 – 2016)

• National Building Standard (NBS)

• Four Categories:- Critical Buildings- People in crowds- Heritage Buildings- Other Potentially EPB

• Initial Evaluation Procedure (IEP)




Christchurch

• Earthquakes bringing to light seismic issues

• Subsequent legislations

• Canterbury Royal Commission Report




Drivers of Policy Changes

• Canterbury Royal Commission Report (minor)

• Banks (major)

• Insurance (major)

• Tenants (major)




Prudent to Wait?

• Anticipation of current building codes increasing

• Ensuring compliance after the changes

• Belief that better science, technology and legal clarity will come




Need to fully understand

• Danger in over generalisation



Part II: Remedial Construction

Background

• Shift from building claims to building repairs

• Settlement / judgment / government packages – where to next? (often very tired and bitter)




Financial and Banking Requirements

• Conditions of settlement

• Inevitable shortfall from settlement / judgment / package

• Bank Funding

• Section 48 (74) and issues




Scope of Works

• Properly ascertaining scope of works

• Examples: fire report, painting, carpeting

Litigation Lawyers ≠ construction lawyers

Second Generation Claims



Part III: Off the Plan Purchase

Background

• Recent rise of city apartment developments

• Need for purchasers to understand the risks and implications




Securities Act

• What constitutes securities under the Security Act?

• Representations on rental or returns?

• Prospectus?




Problematic Terms

• Sunset Clause

• Modification / amendment Clauses

• Defects Liability

Unit Titles



Part IV: Guarantees / Warranties

Background

• No guarantees or warranties on new built houses

• Ineffective?



Part IV: Guarantees / Warranties

Empty

• Banks and Insurance requirements

• Public misnomers

• Need to get from head contractor, manufacturer, subcontractors and all involved

• Disclaimers or client warranties undermining guarantees/ warranties



Part V: SFO

Background

• Joke, but what constitutes an extension of time?



Thank you very much!

Documents

LexisNexis Pacific 1 Marcus Beveridge / Tina Hwang (Principal/ Solicitor) Queen City Law Building & Construction Law Topical Issues