The leaky homes crisis is an ongoing construction and legal crisis in New Zealand concerning timber-framed homes built from 1988 to 2004 that were not fully weather-tight. The problems often include the decay of timber framing which, in extreme cases, have made buildings structurally unsound. Some buildings have become unhealthy to live in due to moulds and spores developing within the damp timber framing. The repairs and replacement costs that may have been avoided were estimated in 2009 to be approximately NZ$11.3 billion.
Factors The Building Act 1991, which became law in 1993, changed building controls from a prescriptive system to a more self-regulated regime. In addition, the Government dropped the apprentice training system for builders and the related building trades. Some developers and builders knowingly or carelessly constructed buildings with numerous faults and short-cuts. An architectural design trend towards Mediterranean-style houses with complex roofs, plastered exterior walls, internal decks and small or no eaves also factored in. Some local authorities were later found to have issued Building Consents based on insufficient documentation, failed to carry out inspection of the work during construction, and issued code compliance certificates for buildings which were later found to have leaking problems. Consequently some councils now share significant financial responsibilities with the builders (which in many cases have closed or otherwise removed themselves from liability) and the owners. Court cases have generally assigned around one third of the financial responsibility to local authorities. A 2013 Supreme Court case involving the Auckland City Council extended the liability of local bodies.
Causes There are many reasons that some buildings from the late 1980s were leaky.
Cladding systems A major one was the increase in the use of cladding systems such as fibre cement sheet (generic name Fibrolite in New Zealand) and EIPS (Externally Insulated Plaster System) that relied on a paint finish as the primary defence against water ingress. This system is very similar to Exterior insulation finishing system (or EIFS). Such cladding systems typically allowed for little construction or thermal movement so that fine cracks that appeared insignificant, and would have been relatively insignificant in traditional claddings such as weatherboard, allowed continuous ingress of moisture into the framing. These causes, combined with the reduced air movement through the prevalence of sheet cladding or sheet insulating materials for the monolithic look cladding, resulted in very damp conditions which are ideal for rot. A further exacerbating factor that resulted in more significant damage from the leaks, was the change to the New Zealand Standard for Timber Treatment in 1995, allowing the use of untreated Pinus radiata (radiata pine) timber for wall framing. As this timber has little natural resistance to rot when wet, damage occurs more quickly. In many cases claddings were not used within their specifications or not installed correctly. Many buildings built in the "Mediterranean" style used these types of cladding and had features such as recessed windows, flat roofs, minimal eaves, multiple storeys, complex roofs, solid balustrades, balconies and penetrations of the exterior cladding that increased the likelihood of water infiltrating the structure.
Drawings Lack of detailed drawings for buildings was also a contributing factor. Some builders were unable to make a weathertight structure without proper guidance. This has partially been blamed on the breakdown of the apprenticeship system and unqualified builders in the marketplace. Council staff carrying out building inspections had neither the required construction expertise to ensure weathertightness nor the intuition to look for it.
Juvenile sapwood A likely major contributing factor was the exhaustion of New Zealand's "First Rotation" (50-60 year old) radiata pine crop in the late 1980s, and the change to using short rotation 25-30 year old radiata pine at the same time. Overseas studies of similar short-rotation produced juvenile sapwood had concluded it was so different from "normal" wood that it would be wise to treat it as though it were a completely different species. New methodologies to utilise the wood would have to be developed. A crash research-project by the New Zealand Forest Research Institute to, amongst other objectives, attempt to identify how the new crop Radiata could safely be used in construction took place between 1995 and 1998. That project gave rise to many of the innovations and regulatory measures later implemented to attempt to allow for safe construction using juvenile sapwood including, notably, the rise of LVL and other laminated structural products.
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