Resolving a Building Dispute for Home Owners

Building Disputes Tribunal NZ wants to minimise the stress associated with having a building dispute. This can be done by dealing with each issue as it arises and educating yourself about the building and construction process.

Types of disputes commonly encountered by homeowners include:

Disputes with a builder about the quality of the work being undertaken, the time it is taken and the cost of it.
Disputes with a consultant (ie Engineer, Architect, Surveyor) regarding the completion of the plans or the engineering considerations of a project.
Getting caught in the middle of a dispute between the Builder and their Subcontractor in relation such as quality or cost of the subcontract work (ie painting, tiling, plumbing). These disputes are awkward as you do not have any direct control over them as your contract is with the builder not their subcontractors
Leaky homes where there is water coming into the home

The methods for resolving building and construction disputes include adjudication, mediation and arbitration. Each has its pros and cons and Building Disputes invites you to review our website and to telephone if you have any questions.

Obviously, it is preferable to take steps to avoid disputes on your construction project in the first place. You can do this by getting your construction contract in writing and reviewing it (with or without a lawyer) so that you understand what your rights and obligations are and by educating yourself as to the construction process so that you now when things are not going right.

Exactly what is adjudication?

Adjudication is a dispute resolution process that is intended to resolve disputes in a quick and relatively inexpensive manner. It is only available for use by parties to a construction contract who have a dispute arising during the completion of the construction works.

It is a similar process to a Court proceeding with the dispute arising under the building or construction contract being referred to an independent 3^rd party who reviews the ‘evidence’ on each side before making a decision that is binding and enforceable. The Construction Contracts Act 2002 establishes the procedural requirements to be followed when referring a matter to adjudication which is summarised on the Building Disputes Tribunal website.

Adjudication does not necessarily achieve a final settlement of any dispute because either of the parties has the right to refer the same dispute to be hard afresh at Court or in arbitration (where the contract provides). However, in New Zealand, the majority of adjudication determinations are accepted by the parties and the matter is no litigated further.

It is different to mediation as mediation relies on the consent of the parties to the exploration of issues between them with a neutral 3^rd party who will not be making an

enforceable decision.

Adjudication is also unrelated to the procedure used in the Weathertight Homes Resolution Service for the resolution of “leaky home” matters but can, in certain situations, be used to resolve a leaky home dispute should the claimant wish to refer the dispute to adjudication rather than rely on the WHRS.

We are continually updating our website and hope you find it a useful resource to aid you with your construction project and the resolution of any building dispute (should one arise)