This note summaries recent construction law decisions and developments in New Zealand.
This case highlights the importance of form when issuing a payment claim and the effect of an inadequately formed payment claim on a summary judgement application for outstanding sums.
From July 2014 to August 2015, The Warrington Group Limited (Warrington) engaged Auckland Electrical Solutions Ltd (AES) to carry out electrical work for a construction project. AES sent invoices totalling $83,599.57. Payment by Warrington and credit notes in favour of Warrington left $8,659.83 outstanding. AES claimed the invoices were payment claims and sought summary judgement in the District Court under the Construction Contacts Act 2002 (the Act) for the outstanding amount and associated costs.
Clark v Central Lakes Homes Limited  NZHC 1694
This decision highlights the arbitral distinction in the enforceability of the sums due and rights/obligations under construction contracts, prior to the recent CCA amendments. Written by Nick Gillies and Richard Belcher
How will the changes to the Construction Contracts Act 2002 affect Architects, Engineers and Quantity Surveyors?
It is now widely accepted that New Zealand is in the midst of the largest construction boom in 40 years. For anyone working in or providing professional services to the construction sector.........written by Nick Gillies
Last year the High Court refused to strike out a negligence claim that a designer, manufacturer and supplier of building materials owed a duty of care to the ultimate property owner. That decision has been upheld on appeal ..........
  NZHC 681
Our construction team has been featured in the August 2015 edition of Business North, commenting on New Zealand’s current building boom. The article outlines reasons for the increase in demand, upcoming changes to the legal landscape and the emerging trend of alliancing as an alternative procurement model. Check out the online edition of Business North
(page 59) as well as our earlier note
for more detail.
Helen Macfarlane, together with Christina Bryant, Nick Gillies and Michael O'Brien are the authors of the New Zealand chapter of the 2015 edition of “Getting the Deal Through: Construction”. Getting the Deal Through works with many of the best lawyers and law firms in the world to bring together a unique legal information resource, written by experts on each subject area, in every significant jurisdiction.
Link reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through: Construction 2015, (chapter published online in March 2015; contributing editor: Robert S Peckar, Peckar & Abramson, PC) For further information please visit www.gettingthedealthrough.com.
Since its introduction twelve years ago, the Construction Contracts Act 2002 (CCA) has become a cornerstone of New Zealand's construction sector. The CCA followed similar statutory interventions in the UK and NSW by seeking principally to redress the perceived power imbalance between principals and contractors and between contractors and subcontactors.
Two recent Court of Appeal decisions, SOL Trustees Limited v Giles Civil Limited and Watts v Hughes Construction Limited v Complete Siteworks Company Limited highlight potential pitfalls when responding to payment claims under the Construction Contracts Act 2002: a payment schedule must comply with s 21 to prevent a payment claim falling due, and the exercise of a contractual right of election to extend the due date for responding to a payment claim must be communicated to the other party.
The Building (Residential Consumer Rights and Remedies) Regulations 2014 (the Regulations) are coming into force on 1 January 2015. These implement a number of new consumer protection measures for residential building work.
It is now widely recognised that New Zealand is on the brink of the largest construction boom in 40 years. ‘Unprecedented growth’
is expected over the next decade.
This note outlines the main reasons for the increase in demand, puts some figures against the expected growth and outlines the relevant legal issues and current responses.
Steven Joyce, Minister for Business Innovation and Enterprise, Press Release, 20 November 2013
New Zealand sits on the cusp of the largest construction boom in a generation. One of the challenges (and opportunities) that this presents is how best to manage the inevitable increase in building and engineering disputes. While this is especially true for the Canterbury rebuild, the pressures will be felt around country.
John Anthony Osborne and Helen Osborne v Auckland Council
On 10 June 2014, the Supreme Court delivered a decision on the eligibility criteria under s 14(a) of the Weathertight Homes Resolution Services Act 2006 (the WHRSA). The practical effect of this decision is that what is in effect a ten year limitation period (governing the time by which an assessor’s report must be sought in order for a claim to be eligible for a WHRSA determination) starts running from the date of issue of the code compliance certificate by the local authority.
The Minister of Education and others, including four school boards of trustees, issued proceedings against Carter Holt alleging its cladding product, called shadowclad and installed in various school buildings throughout New Zealand, was defective and allowed water to enter.