Approved repairs and costs

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Approved repairs

Your homeowner agreement defines approved repairs as “the work described as approved repairs in the repair plan to repair the property.”

Betterment to your property will not qualify as approved repairs, and you will have to fund these developments yourself.

You will need to submit a repair plan for approval which resolves all weathertightness deficiencies identified in your assessor’s report.

You will receive a letter from us to confirm the repair plan has been approved. This forms the basis of the approved repairs.

Approved repairs describe construction work (that will receive contributions) and is normally carried out by the builder.

Repair work that is not approved

Sometimes you will have to make repair work that does not qualify as approved repairs.

This will usually relate to making parts of your property weathertight where repairs to those parts do not qualify for contributions under the FAP. This can include:

• Areas of your property which leak but are “out of time”. For example, where alterations were constructed within 10 years of you bringing a claim, but some earlier defective work was not.
• Units in a complex or multiple properties attached by party walls that are not part of your claim. Repair work may be needed to such units if they have deficiencies or damage, but this work will not be eligible for contributions.
• Repair work which is necessary to make your property weathertight, but the leaking and damage is not covered by the eligibility criteria within the Weathertight Home Resolution Services Act. This means water entry was not caused by any aspect of its design, construction, or alteration, or of materials used in its construction or alteration. Water damage may be from:
  • vehicle impact damage
  • earthquake damage
  • plumbing leaks that have damaged the external wall cladding.

Approved costs

You can find a full list of approved costs in your homeowner agreement.

• The approved costs are the costs to undertake your approved repairs – this is the repair work which qualifies for contributions.
• Approved costs include both repair costs (typically construction work on site) and associated costs (typically design and consent fees).
• Approved costs do not include the cost of any ‘other repairs’ (repairs that are not approved repairs) or betterment.
• Approved costs may be adjusted during construction if any changes to the scope of approved repairs are necessary.

How our contributions are calculated

You can work out how contributions for your approved repairs will be calculated by choosing the relevant option below. With either option, any approved variations to the scope or contract price may result in your final payment being higher or lower than the final milestone amount stated in your payment plan.

Option 1

Your payment plan addresses the scope of the approved repairs (usually the repair scope in the assessor’s report) and:

• clearly separates repair from betterment costs
• includes repair costs which are reasonable when compared with the assessor’s estimate (where addressing the same scope) and current market conditions.The basis of contribution is your quoted costs as presented.The final amount contributed towards your construction costs will reflect the total of your invoices for approved repair work, including approved variations to the scope or contract price. The costs for any ‘other repairs’ (repairs that are not approved repairs) and betterment shown in your payment plan will not be included for contributions.

Option 2

Your payment plan addresses the scope of the approved repairs (usually the repair
scope in the assessor’s report) but:

• the quoted costs appear unreasonable, or
• the payment plan is otherwise unacceptable.

The basis of contribution is your quoted costs with some line items adjusted by us.

The final amount contributed towards your construction costs will reflect the total of your invoices for approved repair work, with adjustments made to those particular line items that were identified in the approved payment plan.

It will include contributions towards approved variations to the scope or contract price. The costs for any ‘other repairs’ (repairs that are not approved repairs) and betterment may also have some adjustments made to particular line items, if such adjustments were identified in the approved payment plan, and will not be included for contributions.

Variations and monetary allowances

If any variations arise during your construction process that impact upon the scope of approved repairs, your approved costs may be adjusted.

This adjustment means subtracting the amount of monetary allowances you included in your approved payment plan from the actual cost of the variation work. The allowances could be:

• provisional sums
• prime cost sums
• contingency sum

View the variations and change requests fact sheet [link to AR118]

Associated costs for the approved repairs

You associated costs include:

• certain professional fees
• consent fees
• contributions towards alternative accommodation and storage
• contributions towards a pre-repair valuation.

In all cases, your associated costs are considered separately to any quoted costs.

Each application you make for an associated cost will be assessed on its merits.

We will set your contribution costs. They will be based on what is reasonable for the approved repair work.

View the associated costs fact sheet.