The changing face of DIY

By - , Build 122

We have no doubt all heard about or seen problems from poorly planned or undertaken DIY renovations. Often DIYers don’t know the legal requirements or the implications of not following these, so what are they risking and what changes are afoot?

New Zealanders love the idea that they can increase the value of their property by carrying out do-it-yourself renovations. However, poorly planned or performed DIY work can cause problems, and the landscape may change with the introduction of the Licensed Building Practitioner Scheme. Therefore, it is crucial for DIYers to know what work they can legally do and whether or not a building consent is required for the work.

When is a building consent needed?

Certain renovation work under the Building Act 2004 will require a building consent, for example, if:

  • the work will affect the structural integrity of a building
  • it includes the demolition of parts of the existing building or any siteworks
  • decks are more than 1 m in height above ground level
  • a garage is converted to a living space (and certain other conversions)
  • a window or door is shifted or made larger.

Section 41 of the Building Act sets out the work that does not require a consent.

The price of not checking whether a building consent is required can be high. It is an offence to carry out work requiring a building consent without one. The maximum penalty under the Act is up to $100,000, with a further $10,000 per day in the case of a continuing offence (although the fines imposed are typically less than $10,000). An offence under section 40 of the Act is also a strict liability offence. This means that it is no defence for someone to say that they did not know they were committing an offence.

Implications of no consent

A failure to obtain a building consent where it is required for building work can have on-going implications.

STANDARD SALE AND PURCHASE WARRANTIES

If a DIYer carries out work that required a building consent without one, they will be unable to provide the standard warranties contained in the widely used REINZ/ADLS Agreement for Sale and Purchase. Under the standard agreement, the vendor warrants that if they have done or caused or permitted to be done work requiring a building consent, the consent was obtained and the work was completed in accordance with the consent.

Crossing those standard warranties out is usually a clear signal to the purchaser that they need to make further inquires about the work carried out at the property. This may put a potential buyer off a sale or result in them seeking a reduction of the price. House buyers are far more cautious than they used to be.

On the other hand, if a vendor provides the warranty to the buyer, there is a risk of the buyer discovering the issue at a later date and suing the vendor for a breach of the warranty. A buyer could sue a vendor for breach of warranty for up to 6 years from the date that a sale and purchase agreement was entered into.

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RETROSPECTIVE CONSENT

If a DIYer subsequently realises that they ought to have obtained a building consent, it may be more difficult to make the work legal than they expect.

For an added cost, they may apply for a certificate of acceptance for the work. However, this may be unobtainable if there has been any change of standards. A certificate of acceptance looks at compliance with the Building Code at the time of the application, not the time of construction.

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INSURANCE MAY BE DECLINED

Further, there may also be insurance implications of not obtaining a building consent. Home and contents insurance may be declined if it is revealed that a building consent was not obtained for any building works carried out at a property.

Other restrictions on DIY work

There are other areas of work that DIYers are restricted from carrying out. The Electricity Regulations provides a list of allowable electrical work, so it is important to consult this list before carrying out any electrical work.

Similarly, DIYers are only able to carry out minor plumbing works.

Compliance with the Building Act

Any building work – whether requiring a building consent or otherwise – must still be carried out in accordance with the Building Act 2004. A DIYer who carries out building work will be responsible for that work and, if it turns out to be defective, may be held liable for those defects (as an owner/builder) to any subsequent purchasers of the property.

Therefore, DIYers need to know their own limitations. The leaky home crisis has illustrated that sometimes even small defects in a construction process can cause disproportionate damage. A short-term saving in a DIYer carrying out certain work may dissipate if a potential buyer is put off by poor workmanship or a subsequent purchaser suffers loss as a result of that work.

Licensed Building Practitioner Scheme brings restrictions

From March 2012 onwards, only licensed building practitioners will be able to carry out restricted building work. Restricted building work is defined to include building work that is critical to the integrity of the building. It does not include work for which a building consent is not required.

There have been concerns that these requirements could spell the end of the New Zealand DIY tradition, but this seems unlikely, as the majority of DIY building work will not typically fall within the definition of restricted building work.

If certain work does fall within the definition, a DIYer may be able to apply for an exemption. One of the conditions of the exemption will be that the DIYer will have to complete a statutory declaration that they meet the conditions of the exemption process. Their declaration will be available on council files, and subsequent buyers of a property will learn that a non-licensed building practitioner carried out the work.

This could put potential buyers off a property or lead them to make more extensive inquiries than they may otherwise have made into the quality of that work. A DIYer will then have to weigh up the likely pros and cons of choosing not to get the professionals in.

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Note

This article is not intended as legal advice. For further information, please contact the Harkness Henry Building and Construction team on (07) 838 2399 or email [email protected].

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