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ARTICLE · 09 JUNE 2022

Building defects & limitation update

Some building defects may not be obvious for years after the completion of the building.

New ZealandReal Estate and Construction

Issues of limitation are a common feature in disputes relating to building defects. Often, by their very nature, defects are not obvious upon completion of the building and may only be so years - or even decades - later.

There is a balance to be struck between allowing building owners to recover losses arising from defects and having a finite period within which claims can be brought, to provide certainty to all parties involved. Parliament decided that an appropriate balance was to allow building owners to bring proceedings within 10 years of the undertaking of building work. This is what section 393 of the Building Act 2004 provides.

A building owner may consider that there are several parties who could be responsible for building defects. The relevant Council, the builder, the architect, the engineer, or another relevant specialist subtrade, are all common targets for an aggrieved building owner.

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