Description

This guide has been prepared by the Ministry of Business, Innovation and Employment (MBIE) to provide assistance to contractors and home owners who may be unsure of what constitutes a defect for the purposes of the Building Act 2004. It  covers aesthetic issues rather than issues of non-compliance with the Building Code.  This guide supports new consumer protection measures that came into law in January 2015 and is concerned with defects that a contractor would be required to remedy if notified within one year of completing the building work. 

This guide focuses on issues that can lead to disputes between building contractors and home owners but fall outside the Building Code, contract documentation and manufacturers’ specifications and installation instructions.

It outlines what constitutes acceptable levels of workmanship in standard domestic construction types under normal conditions, and is targeted at new residential building work.

This guide has been developed in cooperation with an advisory group from the construction industry and a consumer representative. It draws on existing industry norms for workmanship set out in New Zealand Standards and trade publications.

Scope

In brief, the guide explains that a defect includes:

• anything that does not comply with the Building Code
• variations from consented drawings that have not been agreed
• failure to meet specifications agreed in the contract
• product failure earlier than anticipated
• failure to achieve acceptable industry levels of quality or performance on items not covered by the first four bullet points (as outlined in the guide)

The building contractor cannot be held liable for an event they or their subcontractors weren't involved in, including damage:

• that is not within human control (for example, natural disaster)
• done by a person outside their control
• resulting from a failure to undertake normal maintenance (by the building owner)
• resulting from a failure to carry out repairs as soon as practical after the defect became apparent.