What are the proposed changes? Changes are being mooted to retention arrangements. The Government has announced that a "deemed trust" arrangement is their proposed solution to protect subcontractors from circmustances like those that followed Mainzeal’s collapse. Retention funds won’t need to be held in a separate bank account though so whether the funds are truly…
DetailsCommunal land in residential developments is a common and useful way to expand space available to homeowners, giving them the benefits of land ownership without the same burden. It’s common place both in rural areas and increasingly in the urban setting where space is at a premium. The arrangement has some legal difficulties. Historically this…
DetailsThe legal set-up of a new subdivision or unit title development should be treated with as much care as the physical design. It’s very easy to leave a mess – one that is difficult and expensive to resolve. The rights, rules and restrictions that a developer puts in place for the new neighbourhood are generally…
DetailsWith the Unit Titles Act 2010 (UTA), bodies corporate were required to implement a long term maintenance plan. By special resolution, a body corporate could opt out of having a long term maintenance fund. Most bodies corporate have plans. Not so many have funds (or sufficient funds) to cover all the needs of their buildings. More…
DetailsThe Court of Appeal looks at how costs for remedial works should be shared at Auckland’s Shangri-La apartments. Wikipedia notes Shangri-La is meant to be a “permanently happy land”, not so Auckland’s Shangri-La. The Court of Appeal was asked by the body corporate (i.e the owners) to look at: * the cost allocation for remedial…
DetailsNext month the Government will begin to introduce a new Health and Safety (H&S) regime in its bid to achieve a 25% reduction in workplace fatalities and serious injuries by 2020. As a result, most businesses will need to immediately up skill, perform due diligence and then implement the necessary change in order to be…
DetailsEarlier this year the Christchurch Council lost its accreditation as a building consent authority. It failed to meet criteria necessary for the accreditation. However the Council has continued to issue building consents and government has maintained the view that the loss of accreditation does not affect the ability of the Council to issue consents. This…
DetailsMost residential property developers use the NZS 3910 standard form of building contract. It’s used for infrastructure works for a subdivision or for building high-rise apartments. It’s used regardless of the procurement method e.g. traditional client-designed projects, design/build (with or without novated design consultants). NZS 3910 has just had a make-over. This should mean fewer special conditions…
DetailsDevelopers commonly become members of the body corporate committee, especially if units remain unsold or it is a staged development, so as to retain control. There has been a recent case (Guardian Retail Holdings Limited v Buddle Findlay High Court, 27 June 2013) considering body corporate committee member’s personal liability. The underlying issue was the…
DetailsWe are seeing new structures and different property offerings. Now Government, Council, community organisations, iwi are all active in this space. The focus is mostly affordable housing – ironically being delivered via complex contract structures with multiple parties involved, probably adding cost to the development process. But the land is going into and out of…
DetailsIt’s tricky – anticipating what the bank will want; especially if your plan is to change lenders once development funding is needed. It definitely involves wearing a banker’s hat. Balance that with matching the flexibility a residential property developer needs to manage unexpected changes, and the requirements of the contract to be something the market…
DetailsSugartree have secured their development finance and have started the construction of Stage 1 which comprises 148 apartments and 15 retail units together with basement car parking. Stages 2 and 3 include 425 more apartments, more commercial units, carparking and a rooftop garden. The team at AlexanderDorrington have been working with the Sugartree developers…
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