Tepaki responds to $12M leaky building claim

When asked on Tuesday about the $12 million claim by apartment owners at the 90 unit title Stadium Gardens complex in Wellington, which he developed, Tim Tepaki told the Herald he knew nothing about it and never had papers served on him and wasn’t even asked to attend the mediation meeting last year. The claim had been reported in the Wellington daily newspaper, the Dominion. “Leaky building syndrome is a nationwide phenomenon in New Zealand,” said Tepaki, “that is construction related and not development related, so it’s not surprising that I wasn’t contacted.” He said 42,000 buildings had been identified in New Zealand as having leaky building syndrome.
Tepaki explained that developers scope the development and obtain resource consent, which is the equivalent of EIA consent here, and engage consultants to design the construction and builders to construct the building, ensuring their insurances are current and able to cover remedies. He said smart developers also appoint project managers to monitor the development and report to them and stay at arms length from construction risk, as he did. He added that owners can’t make construction problems development problems at will, just as lawyers can’t make civil contempt criminal contempt at will as tested by him in a recent court action.
Tepaki told the Herald the problem of leakage is related to the monolithic exterior cladding on the upper part of the building and either the cladding product supplied was inferior or the installation was inferior. He said his project manager ensured the certification of installation was complied with and he did receive a certificate of compliance before he took possession of the building, which then implicated the City Council in the failure of the cladding as it is the ultimate certifying authority.
Asked why the owners were naming him in their litigation, he said developers normally have deeper pockets. He added that he sympathizes with owners and takes the position they are entitled to sue, just not him as it is construction failure they are dealing with. Were it a development matter he would have been required to attend the mediation meeting last year, when the matter should have been resolved, as all consultants, the contractor, its subcontractors and certifying authorities are all insured for such failures.
Asked what the solution was, he said re-clad the building, which he thought could be done for around $4-5 million. He expects the impediment is lawyers wanting owners to go for more, as all other disputes nationwide are being resolved by replacement as covered by insurance.
Asked if the leaky building syndrome was present in the Cook Islands, he said “Bound to be as inferior products are brought in all the time. Whether the local fungus is as toxic as the fungus in New Zealand is another question.”

Herald Issue 463 10 June
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