Weathertight Homes Resolution Service won’t work, says Smith
United Future MP, Murray Smith, told Parliament today that he believes the Government’s efforts to provide a quick and
cheap disputes resolution process for leaky homes won’t work.
Mr Smith, who is sitting on the Government Administration select committee which is inquiring into the problem, said
the Weathertight Homes Resolution Service sounds good in theory and suggests that the Government is doing something for
homeowners.
”But I predict it will produce a lot of dissatisfaction as homeowners enter the system hoping to get a resolution to
their problems and become highly disillusioned when it doesn’t produce the results they expect,” he said.
“Mediation only works where there are willing parties. The fundamental issue is therefore whether the suppliers
involved stand by their product and their workmanship or not. It they do, then the problem will in most cases be able to
be resolved through informal discussions without the need for mediation.
“If they don’t, then in most cases the suppliers simply won’t turn up,” he predicts.
“Mediation is also unsuitable when there are more than two or three parties and when the issue is complex and most of
the disputes fall into both categories with architects, manufacturers, builders, subtrades, local authorities and
building certifiers, the Building Industry Association, previous owners, building consultants and even lawyers all
within firing range. And everyone acknowledges that the issues are complex,” he said.
In the case of the proposed adjudication, Mr Smith says that the Construction Contracts Bill dispute resolution
procedures are not suitable in this case. Again they are designed for simple debt collection disputes based on clear
contracts and mostly requiring a low standard of evidence. They are also designed to provide remedies for tradesmen who
are owed money by head contractors. In the case of leaky buildings the “head contractor” is the homeowner – the one whom
the Government is trying to provide remedies for and so the Act’s intentions would be reversed.
He says this is evidenced by the remedies that the Bill provides which are simply injunctive – suspending work if not
paid and obtaining charging orders over the construction site.
“This is hardly protection for home owners,” said Mr Smith. “Decisions are also not final so people are going to have
to go through the Courts to get an enforceable judgment anyway.”
The MP’s solution is to take all such cases straight to the District Courts, appoint more judges and Court staff if
necessary, and instruct the Courts to give weathertightness issues top priority.
“The District Court has pre-trial hearing and mediation powers that can be used to restrict the issues in the dispute
and try to bring about a negotiated resolution,” Mr Smith said.
“But they also have the powers to compel all relevant and non-privileged evidence to be disclosed and most significantly
would avoid the establishment of yet another layer in the judicial process and prevent administrative duplication.”