Liability for building defects

Some parties consider that joint and several liability has shifted most of the costs for fixing building defects onto local authorities, and therefore onto ratepayers. We were asked to identify the evidence for this, and how a residential building warranty scheme might help New Zealanders avoid financial loss on their single most significant asset.

We worked with MBIE policy staff to unravel these issues with particular emphasis on incentives, financial risk, and building sector productivity and accountability.