11 October 2024

Construction: Solicitor-General's Refererence (No.1 of 2022)

 

Filing Building Act producer statements with local councils as proof construction complies with both the building code and the relevant building consent amounts to ‘building work,’ leaving engineers and architects open to prosecution if incorrect.

Producer statements were developed as an industry initiative to speed up compliance processes for building work.  Architects and engineers filed with local councils their sign-off, stating building work was compliant.  Councils came to rely on these professional assessments as definitive, avoiding the need to have their staff make an assessment.

The inevitable happened.

Producer statements came to be filed incorrectly assessing work as compliant, when it wasn’t.  Potential Building Act criminal liability followed, hinging on whether a producer statement amounted to ‘building work.’

Conflicting High Court cases followed: one ruling producer statements are not ‘building work;’ another ruling they are.  To settle the issue, the Solicitor-General initiated a generic appeal.

The Court of Appeal ruled producer statements are ‘building work.’

Producer statements are more than a statement of professional opinion, the court said. They have become part of the construction process.

They are an analysis and assessment of work done, the court ruled.  They promote accountability for both owner’s and builder’s construction work, which implements Building Act policy objectives.

Solicitor-General’s Reference (No.1 of 2022) – Court of Appeal (11.10.24)

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