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Building Act 2004

Consumer rights and remedies in relation to residential building work - Remedies for breach of implied warranty

362M: Remedies if breach of warranty can be remedied

You could also call this:

“If a builder breaks a promise that can be fixed, you can ask them to fix it or get someone else to fix it if they don't.”

If a building contractor breaks a warranty and it can be fixed, you have some options. You can ask the contractor to fix the problem, which might include repairing or replacing faulty building products they or their subcontractor provided.

If the contractor refuses to fix the issue, takes too long, or can’t do it properly, you have two choices. You can hire someone else to fix it and make the contractor pay for it, or you can cancel the contract as explained in section 362P.

You can also ask the contractor for money to cover any other losses you had because of the problem. This doesn’t include losses from the building work being worth less, but it does cover other issues you could have expected to happen because of the breach.

Remember, you can only ask for money for losses that were reasonably expected to happen because of the breach. The contractor only has to pay for problems they could have seen coming.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6371135.

Topics:
Housing and property > Home safety and repairs
Business > Industry rules
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362L: Remedies for breach of implied warranty, or

“What you can do if your builder breaks their promise about the quality of their work”

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362N: Remedies if breach of warranty cannot be remedied or breach is substantial, or

“If a builder breaks a promise that can't be fixed or is really bad, you can ask for money or cancel the deal.”

Part 4A Consumer rights and remedies in relation to residential building work
Remedies for breach of implied warranty

362MRemedies if breach of warranty can be remedied

  1. This section applies in any case where the breach of warranty can be remedied.

  2. If this section applies, the client may require the building contractor to remedy the breach (including repairing or replacing defective building products supplied by the building contractor or the building contractor's subcontractor).

  3. If the building contractor, after being required to remedy the breach, refuses or neglects to do so, or does not succeed in doing so within a reasonable time, the client may—

  4. have the breach remedied by someone else and recover from the building contractor all reasonable costs incurred in having the breach remedied; or
    1. cancel the contract in accordance with section 362P.

      1. In addition to the remedies in subsections (2) and (3), the client may obtain from the building contractor damages for any loss or damage to the client resulting from the breach (other than loss or damage through reduction in the value of the product of the building work) that was reasonably foreseeable as liable to result from the breach.

      Notes
      • Section 362M: inserted, on , by section 56 of the Building Amendment Act 2013 (2013 No 100).
      • Section 362M(2): amended, on , by section 80 of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).