Weathertightness, Economic Loss, Equity and Remedies

Abstract

New Zealand’s leaky housing crisis, generally associated with the period between 1995 and 2004, has left a legacy of costs which continue to thwart the provision of affordable and healthy housing. Furthermore, those displaced and financially harmed by the deregulation of building standards under the Building Act 1991 face arbitrary time frames in which to seek appropriate remedies. The model of applying a limitation defence in circumstances of systemic failure has contributed to inadequate accountability and weak incentives for performance in the building industry. This article explores the causes of the leaky housing crisis, including the political impetus to reduce building construction costs, and suggests how similar systemic failures can be avoided in the future.