Sections 362I, and 362Q-V, 396-399 Building Act 2004
Implied Warranties (Residential Buildings)The Building Act 2004 sets out a system of implied warranties that require work on residential buildings to be:
- carried out competently
- compliant with the specifications in the building consent
- compliant with other relevant legislation
- done with suitable materials
- done within the agreed timeframe
These warranties apply for up to 10 years regardless of the work’s value and whether there was a written or verbal contract.
Breaching an implied warranty is considered a break of the building contract itself, and will trigger the Building Act 2004 procedures in sections 396-399.
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12-Month Defect Period (Residential Buildings)
The Building Act 2004 also provides a 12-month defect repair period for residential buildings.
Defects might include poor workmanship or defective materials.
Any defects that emerge within this period after the work is completed (according to the agreed upon completion period) must be remedied by the contractor. This might also involve compensation for loss or damage resulting from the defective work.
Note that this publication does not deal with defects that are non-compliant with the Building Code.
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Here are some of the relevant cases in his sphere:Palmer v Hewitt Building Ltd, [2021] NZHC 1460
- This case concerned a breach of Building Act warranties for renovations to a house.
Haskell Construction Ltd v Ashcroft, [2020] NZHC 772
- This case involved examination of an adjudicator's ruling that there had been a breach of implied warranties.
Lee v South, [2019] NZHC 646
- This case makes reference to implied warranties in relation to house renovations.
