Your home: the next steps

Transcription

1 Your home: the next steps Property Address Pack Delivery Date Practical Completion Date Defects Liability Period Finishes

2 Moving Forward Contains useful general guidance for what to do now your earthquake claim is settled and things you might consider as you move forward Warranties and Guarantees Contains useful information on warranties and guarantees, as well as clarifiying what is, and is not a defect Templates for recording additional details about your home that tend to get forgotten, but over time become very important when you need them, for example, the paint colours you might use A place to store your warranties and guarantees for quick reference in the event you need to call on them in the future Construction Documents Information we have accumulated for your home including any engineering reports, the scope of works and anything else we feel may be of value to the building contractor A place to store your own documentation once works begin - this will be excellent reference material if you later decide to make additional changes or want to prove to future purchasers that the earthquake damage has been rectified Moving Forward Warranties and Guarantees Construction Documents Information that may assist you in the future following your settlement Keep all the warranty and guarantee documentation for your home here Relevant documentation on your home

3 Managing your funds following cash settlement If you haven t yet decided your next move or you have decided to delay the works to your home, we suggest you discuss with your bank or a financial advisor, the best way to manage the funds from your cash settlement. Funding the works In establishing the most appropriate and cost effective option for the remediation of your home Lumley has assessed the damage and considered any engineering or geotechnical requirements. Where these have been required we have included them in this pack. They will be able to advise you on options for investing the funds until they are required and generally making sure the money works for you until you decide what your next steps are. When you re ready to begin the works to your home You may have previous experience with building a home or undertaking renovations. For the less experienced we have provided information intended to help guide you through the building process. When you re ready to start the repair or rebuild of your home there are a number of steps you will need to take. These will include: Choosing a building contractor and other professionals Deciding on the design for your home; do you want to make changes or do you stay with what you had? Understanding whether the works to your property require consent? The following are useful websites for helping guide you through these next steps: If your home is repairable we will have included the scope of works capturing what is required to remediate the earthquake damage to your home. If your home is a rebuild we will have provided you with the costs your settlement offer was based on. We are confident you will have sufficient funds to complete the required works for your home because these scopes have been costed by a building contractor and then reviewed for accuracy by a qualified Quantity Surveyor. If you decide to take the opportunity to do additional works or make changes to your home then it will be your responsibility to fund these. Furthermore, if you decide not to undertake the works immediately then any price increases that occur in the meantime will need to be met by you.

4 Choosing a building contractor and other professionals You can decide yourself whether to use the building contractor who has already scoped your home or begin afresh with a new builder. The building contractor who scoped the damage will be familiar with your home and you can contact them directly once you are ready to begin works. If you decide to use an alternative building contractor, the information included in this pack will likely prove very useful in helping them plan the building project. We have provided details of a number of websites below that will assist you in finding and choosing an appropriate builder. We recommend you ask the building contractor for references from previous customers and examples of previous work. There will likely be various other trades required for your home and often the building contractor will have their own preferred subcontractors. If not, then the sites listed below will also assist you to identify suitable individuals or companies Design The next step to reinstating your home is the design process. One of the benefits of cash settling your home is that you will have the flexibility to make changes to the layout or finish of your home. Remember, these changes will not have been included in the original scope of work, so they will likely incur additional costs which you will need to cover. If your home is repairable you may not need any design work. If you do need design work then you will need to decide what type of design assistance you need. Consent Your design plans will be used for council resource and/or building consent, if required. You can find detailed information on the consent process on the website of your local council, whose contact details have been provided on the Who to contact in future page of this pack. You will need to confirm with your building contractor who will take responsibility for submitting building consent (if required) to council. Construction Once you have received council approval, construction works on your home will be able to begin. You and your building contractor will need to come to an agreement as to a suitable date for both parties for construction to commence. During construction it is important that you and your building contractor have agreed expectations regarding quality. Within this pack, we have included a guide to tolerances, materials and workmanship in new residential construction produced by the Ministry of Business, Innovation and Employment (MBIE). Other things to consider The temporary accommodation benefit provided as part of your policy is designed to assist you while you are out of your home. How you manage these funds is up to you. If the benefit does not cover the full cost of your time out of the home, or has been previously settled and fully utilised, then you can apply to several other providers for further assistance, these include: Equally, if you do not need to use the benefit because you are able to stay with family or friends then you will not be required to refund any unused benefit to Lumley.

5 Moving Forward Information that may assist you in the future following your settlement

6 Included Not Required Contents Roles and responsibilities Moving Forward Ongoing insurance Managing quality during construction Post construction Who should I contact in the future? If you decide to sell your home Glossary of terms Warranties and Guarantees Warranties and Guarantees What is and isn t a defect? Information about your home Construction guarantees Product guarantees Appliance guarantees Construction Documents Geotechnical report Engineering report Foundation design Scope of works Council Code Compliance For more information you can visit the Lumley Earthquake Support website,

7 Following cash settlement of your earthquake claim If your claim has been cash settled then once you have signed all the required paperwork the funds will be deposited to your nominated bank account. If your bank has a financial interest in your property, then the funds will be paid to the bank in the first instance, with the balance being managed between the bank and yourself. Your claim will be closed at this point and Lumley will have fulfilled all its obligations to you. If we hold a Deed of Assignment for your EQC claim over the home and/or the land and a further payment is made by the EQC, we will need to reconcile these amounts and ensure any required payments are made. The only remaining task with regard to your claim will be for you to arrange ongoing insurance for your property. Following completion of your home as part of the Lumley programme of works As the home owner you have responsibility to care for and maintain your home from the day you move back in, this should be in accordance with the requirements stipulated by the manufacturer or building guarantee provider. This will ensure the validity of the guarantees in place. The requirements should be clear on the applicable warranty or guarantee. We have included copies of all warranties and guarantees that have been made available to Lumley in this pack. In those instances where a guarantee or warrantee applies but no specific documentation has been provided, e.g. paint, you may need to contact the manufacturer directly to ensure you adhere to the requirements of these guarantees. The following table is to help you understand what is required of the various parties involved in your claim during the period following construction of your home. Responsibilities post construction Homeowner responsibilities Contractor responsibilities Lumley responsibilities * <1 year 1-10 years 10+ years Maintenance to ensure warranties remain valid Complete any warranty requirements Arrange ongoing insurance Maintenance to ensure warranties remain valid Notify building guarantee provider in the event of a defect Maintenance Fix agreed defects Liaise with contractor to ensure all defects are rectified within the Defects Liability Period (90 days or 12 months depending on contract) Rectify any valid defects in accordance with your building guarantee * Lumley is only responsible for managing defects where construction was undertaken as part of Lumley s programme of works.

8 If your claim has been cash settled A good time to discuss ongoing insurance needs with your specific insurance provider is roughly the same time you complete the necessary paperwork for your cash settlement. If you have not already made arrangements with your insurance provider we recommend you contact them to discuss your specific situation and your ongoing plans. It is important you maintain continuity of insurance cover for the home. Later, once you have completed the works to the home, you should contact your insurance provider again to confirm all earthquake damage has been rectified. They will advise you what is required to support any change in the insurance cover as a result. If your home has been repaired or rebuilt as part of Lumley s programme of works As the end of construction approaches, your Case Manager will advise you of the date you will likely be able to return to your home. Ideally you should have insurance cover in place from the day you move back in. It is your responsibility to arrange your ongoing insurance needs and provide all necessary information to your provider. The level of insurance and the terms and conditions of the policy will depend on the individual circumstances of your property, both in terms of the home, and the quality of the land. In the wider Canterbury area our approach to home and contents insurance has largely returned to business as usual. However, you will need to fully disclose all information on your home to enable the underwriting team to understand the risk they are being asked to insure. Contact details for insurance providers underwritten by Lumley: Westpac Southsure NZDF NZ Police Association (please contact the association directly) Safe and Sound (please contact your broker directly)

9 What are the challenges to quality? All new homes with their various build systems take time to settle. The complexity of the build process, the seasoning of the natural materials used and the variations in weather all combine to present challenges to newly completed dwellings. Wood is a natural product and the movement of wood is well known and documented within the building industry. Usually these challenges to quality are well addressed with some minor remedial works to the visible surfaces and connections. For repairs there are a different set of challenges and the most significant aspect of this can be the age of the home. What has been seen is that homes move regardless of age, they were doing so before the earthquakes and will continue this well after the repair is complete. This movement can create some minor defects after the repair is complete. Lumley s approach to managing quality Delivery of quality is primarily the responsibility of the building contractor and their Project Manager. Your Lumley Project Manager also regularly monitors quality as building work progresses raising any issues directly with the building contractor. Quality Assurance Consultant Another part of the Lumley quality initiative is the role of the Quality Assurance Consultant. Their role is to monitor the building project at specified stages as well as undertaking a series of random spot checks. Any issues identified are discussed with the builder s Project Manager and Lumley Project Manager who agree a plan and timing to rectify the issues. Inspection for quality prior to returning the home to you As projects near completion, for both repairs and rebuilds, we undertake a formal defects inspection where the building contractor, the Lumley Project Manager and often the Lumley Quality Assurance Consultant will inspect the final quality of the works to the home. This identifies any issues that need to be rectified prior to practical completion. Practical completion is when the building is more or less complete and the homeowner can return to the home. Occasionally there may be areas of the home that have not been fully completed however they do not prevent you from safely occupying the home. These will be discussed and a completion timeframe agreed with you. Builder's Project Manager Lumley Project Manager Lumley Quality Assurance Consultant

10 Defects Liability Period While every attempt is made to ensure works are complete and of a good quality, sometimes defects may not become apparent until a home has been lived in and all the systems used for some days or even weeks. It is for this reason that there is a defects liability period (DLP). For construction contracts signed before the 1 st January 2015, the DLP period is 12 weeks. For contracts signed after the 1 st January 2015 the DLP is 12 months. During the first 90 days of the DLP, your Lumley Project Manager and the builder s Project Manager will work collaboratively to ensure the relevant tradespeople return to address any minor defects that may arise. At the 90 day point, those claims with a 12 month DLP will be transferred to a Lumley DLP Project Manager. They are responsible for managing any defects through until completion of the 12 month period. Once the relevant defects liability period has ended your building insurance claim with Lumley will be closed. Defects identified post DLP Any defects identified after the completion of the DLP will be handled under your ongoing building guarantee. Be sure to read carefully any documents that the warranty provider sends you, then sign and return promptly as requested. If you do not sign and return these documents you may find you are not covered by the 10 year warranty paid for by Lumley. <90 days Builder's Project Manager and Lumley Project Manager 90 days - 12 Months Builders Project Manager and Lumley DLP Project Manager The Code Compliance Certificate After DLP is complete Builder's Project Manager and Building Guarantee Provider The Code Compliance Certificate (CCC) is issued by the local council s building consents and inspections teams. It is the final confirmation that the completed works comply with the building plans consented by the council and that all work meets New Zealand building code requirements. The normal process is for a final building inspection to be undertaken very near the time the builder achieves practical completion. There are various documents and certificates that the council must have copies of to confirm the correctness of the work completed. When the council receives all of these, and confirms their validity, they will issue the CCC. This will normally be between 3 to 6 weeks after the date of the final building inspection. Lumley will not allow the closure of any claim without the CCC being received (where a building consent is in place). Please use the attached sleeve to store your copy of the Code Compliance Certificate if your works require council consent. If the works to your home did not require a building consent there would be no Code Compliance Certificate required.

11 During the defects liability period Contact your Lumley Case Manager in the first instance. Your Case Manager will liaise with the Lumley Project Manager and with the building contractor to resolve any defects. Urgent matters such as leaks or any electrical issues should be notified immediately to the building contractor. Defects identified post DLP Your claim with Lumley will be closed, and any defects should be raised with the building contractor in the first instance and if applicable your building guarantee provider. Please refer to your building guarantee to confirm this requirement. Ongoing insurance It is the responsibility of the homeowner to arrange your ongoing insurance needs. You will need to contact your insurance provider, i.e. your broker, your bank or any other intermediary you have previously used. Ongoing insurance should be in place by the date of practical completion. See the ongoing insurance page for more details. Warranties and guarantees Post DLP you will need to contact the manufacturer or distributor of the defective product or material. Where you have been provided a physical warranty or guarantee document please refer to this for full instructions in the first instance. Financial advice We suggest you contact either your bank or a financial advisor for any financial advice. Legal advice If you don t have your own lawyer the following options may be available to you: Community Law Canterbury Phone: / 0508 CAN LAW Residential Advisory Service (RAS) Phone: Engineering advice The Association of Consulting Engineers New Zealand (ACENZ) website has a list of its members and also contains information on how to go about engaging engineering services based on your specific needs Councils For information relating to your property: Christchurch City Council Phone: (03) or Waimakariri District Council Phone: (03) or Selwyn District Council Phone: (03) or (03) Ministry of Business, Innovation & Employment (MBIE) Phone: (04)

12 If your home has been repaired or rebuilt as part of Lumley s programme of works The Construction Documents section of this pack contain the key information relating to the assessment of your home by Lumley and any subsequent construction documentation for works managed through the Lumley programme of works. If your claim has been cash settled If settlement of your claim has been with a cash settlement then we have provided you with sleeves so you will be able to store your own documentation with this pack once you undertake the works to reinstate the earthquake damage. Either way, it is likely potential buyers will be looking for assurance that earthquake damage has been fully rectified and that work has been carried out by competent and professional contractors, engineers and architects as required. This pack will assist in proving this work has been completed appropriately. Selling your home prior to reinstatement of earthquake damage You may decide to sell your home after cash settling and are considering selling it in an as is condition without reinstating the earthquake damage. If you do so then you should make the new purchaser aware that you have settled your earthquake claim with Lumley and they will not be able to lodge any further claim for the home. Renting your home prior to reinstatement of earthquake damage If you are considering renting your home prior to undertaking earthquake repairs or while you decide what to do next then you will need to consider any obligations on you as a landlord. Transferring the building guarantee If you decide to sell your home during the 10 year period of the building guarantee then you will need to contact your building guarantee provider to establish what you need to do in order to transfer the guarantee to the new owners.

13 Building defect A defect may relate to the materials used, workmanship or to structural defect. A building defect which would be covered by a building guarantee will need to meet criteria set out by your specific guarantee provider minor imperfections are unlikely to meet these criteria. A defect may relate to; poor workmanship, material product failure, insufficient engineering, incorrect repair in relation to the engineer s approved plan or work that does not comply with standards of local authority. Building guarantee Building/Council consent Building guarantees will provide you with cover for your home once the construction has been completed. Customers whose construction was undertaken as part of Lumley s programme of works will have been provided with a 10 year builders guarantee. A building consent is a formal approval to undertake building work in accordance with the approved plans and specifications. A building consent establishes that your planned building work complies with the Building Act 2004 and the building code. Building consent authorities such as the council, issue building consents, undertake inspections during construction and issue code compliance certificates, notices to fix and compliance schedules. Cash settlement Code Compliance Certificate (CCC) Contract works insurance Where the insurer offers cash to a customer for the value of the costs of reinstating their home or the maximum payment under the policy (whichever is lower) as a means of settling the claim. A Code Compliance Certificate is a formal statement issued under section 95 of the Building Act, that building work carried out under a building consent complies with that building consent. All standard forms of construction contract require a contract works policy to be in place with minimum requirements that must be met. The contract conditions will stipulate who is to arrange the insurance i.e. the contractor or the principal, and who is to be named as Insured under the contract works policy. All construction work no matter the size or complexity of the project contains an element of risk. This will vary from project to project but risks common to all construction works include: Fire Theft Construction collapse Natural disaster earthquake, flooding, storm Defective design, workmanship or materials Third party liability exposures Customer Authorisation Letter Customer handover acknowledgement The Customer Authorisation Letter (CAL) acts as your authority to allow Lumley to undertake the repair or rebuild of your home. Without it we are unable to do so as your policy only allows for us to pay the actual costs of the reinstatement work; it does not allow for us to carry out the work on your behalf. A document which confirms the handover of your home, and corresponding settlement of your claim with Lumley.

14 Deed of Assignment Defects liability period Geotechnical report Property Title A legally binding document which assigns the benefit of the EQC dwelling and/or land claim, including the claim proceeds, to Lumley. This ensures that any funds paid now (or in the future) by EQC on your earthquake claim will be sent directly to Lumley. The defects liability period begins at practical completion which is the conclusion of a building project. Regardless of whether it is a repair or a complete rebuild, the defects liability period is the period minor defects are rectified by the contractor. A report detailing the land conditions for your home. The geotechnical report is utilised by a structural engineer where required (i.e. where engineered foundations are necessary for consent). Property Title records show a property's proprietors, legal description and the rights and restrictions registered against the Property Title - for example, a mortgage, easement or covenant. A title plan is the plan deposited by Land Information New Zealand (LINZ) when the title was created. Property Titles do not contain information about the value of the property. You can get more information on property values from a property valuer. Lumley programme of works Manufacturer s guarantee Ongoing insurance Practical completion Product warranties Scope of works Structural engineering report Lumley s programme of works refers to all homes where Lumley has agreed to manage the reinstatement of the insured s home. Guarantee provided by the manufacturer This includes the terms and conditions for a specific product and/or service specified by the manufacturer. Insurance of your home following the settlement of your claim with Lumley Practical completion is the point where all works are completed and you are able to return to your home. Before practical completion the contractor will arrange with the council to undertake a final inspection before providing a Code Compliance Certificate. Practical completion marks the start of the defects liability period. Usually provided as a document outlining a warranty for a set period of time within the terms and conditions of the manufacturer. A scope of works is a document prepared by builders engaged by Lumley that captures the extent of damage to the house caused by the earthquake(s) and defines what is required to remediate that damage. It includes detailed requirements and pricing, and is reviewed to take into account regulatory and governance terms and conditions such as the guidelines provided by the Ministry of Business, Innovation and Employment (MBIE) which now encompasses, amongst other government departments, the Department of Building and Housing. Engineering or other specialist input is taken into account where required and their reports will be included with this pack. A report provided by an engineer taking into consideration any engineering aspects of a repair/rebuild including consideration of land, materials, construction types etc.

15 Warranties and Guarantees Keep all the warranty and guarantee documentation for your home here

16 Building guarantee Your building contractor will have provided you with the documentation required to enact the building guarantee. You will need to complete and return this document to the building contractor. The building guarantee will then be valid from the date of practical completion. We have attached a sleeve for you to store a copy of your guarantee which will be provided to you by the building contractor. Additional warranties In addition to the builder s guarantee there will be parts of your home or items within your home that will be covered by a specific manufacturer s guarantee. Manufacturers do not always provide specific documentation up front. In the event of any issues with a product you would contact the manufacturer and discuss the issue. There are various types of guarantees available to building contractors and depending on which guarantee your building contractor has provided, there may be different levels of cover for different parts of the home. It is important you read the documentation to ensure you understand what is covered, for how long, and any excesses which may be due. Lodging a claim against the guarantee Any defects in your home following closure of your claim should be notified directly to your building contractor in the first instance. Depending on which guarantee you have you may also be required to notify the guarantee provider. Some guarantees require you to lodge a claim against the guarantee within a specific time period and some guarantees may require you to pay an excess. It is important you read and understand the requirements of your specific guarantee. For your protection please follow the instructions to ensure acceptance of your claim. Please be aware that many guarantees are dependent on the homeowner meeting maintenance requirements for the product to ensure cover, these will be outlined in the guarantee documentation. Often appliances have individual warranties and it is your responsibility as the home owner to complete any required warranty cards to ensure you have cover for these items. Please read through all the documentation to ensure you follow all required instructions.

17 Avoiding disputes There are numerous reasons why disputes may occur including unrealistic expectations of quality by the homeowner, use of substandard products by the building contractor, poor workmanship, or simply genuine defects that occur naturally following construction. Ministry of Business, Innovation and Employment introduces a guideline The Ministry of Business, Innovation and Employment (MBIE) have recognised the potential for dispute situations and have responded by developing a guide that can be used by both homeowners and building contractors. This guide provides assistance for both parties and helps to define acceptable workmanship in standard domestic construction and generally what constitutes a genuine defect as opposed to what is normal performance of a product following construction. Understanding defects A defect may relate to the materials used, to the workmanship, or to a structural defect. Using the MBIE guidelines The MBIE Guide to tolerances, materials and workmanship in new residential construction 2015 will help both homeowners and contractors understand what constitutes a defect and what doesn t by providing recommended viewing positions and lighting conditions for reviewing works post construction. For instance, viewing details close up and under light will of course reveal imperfections. The guideline also provides clarification of accepted construction tolerances. We recommend you look through this guide to help you understand what to expect from your home following construction. Houses, like everything, will age and will require ongoing owner maintenance as with any other home. It is unrealistic to expect the contractor to maintain a home to a perfect, brand new condition forever. We have included a copy of the guide to tolerances, but it can also be located on the MBIE website. It is important to be able to distinguish between construction defects and natural ageing and movement that occur in every home. Your building guarantee provider should also be able to provide you with a copy of their specific defect tolerance schedule which will outline what they will and won t accept as a claim against their guarantee.

18 Paint Colours Area Walls Doors Windows Edging Notes External Kitchen Bathroom Lounge Dining Stairways/ Hallways e.g. Spanish White (Resene) e.g. ½ Spanish White (Resene) Appliances/Fittings Area Kitchen Bathroom Lounge Dining External Bedroom Garage e.g. DELONGHI 60cm Wall Oven e.g.flexispray BY METHVEN Notes Materials Area Cladding Flooring Concrete Linings e.g. James Hardie Frontier e.g. Hardiesoffit Linings Notes

19 Warranties and Guarantees Product Exterior Roof Windows Cladding Paint (if available) Concrete Manufacturer Warranty duration Documentation included Interior Dishwasher Hob/Oven Extractor Dishwasher Heat pumps/burners Vinyl Garage Doors Fittings (Kitchen) Alarm DVS/Ventilation Drainage (CCTV Survey) Electrical Other appliances Flooring (other) Carpet Vanities Toilets Curtains Paint Fittings (Bathrooms) Building Producer statements Building guarantee

20 Construction Documents Relevant documentation on your home