Liability for “earthquake-prone” buildings
A year on from Christchurch’s 22 February 2011 earthquake, legal responsibility for earthquake-proofing buildings is a hot topic.
One of the high-profile buildings to collapse, the Canterbury Television Building, was recently reported to be sub-standard in terms of Building Code requirements at the time of its construction. In particular, the combination of asymmetrical walls and non-ductile columns is said to have meant that the CTV Building was unable to withstand the stress of the 6.3 magnitude earthquake.
A Technical Investigation into the Structural Performance of Buildings has been undertaken by the Department of Building and Housing. The Investigation reported on the failure of the Pyne Gould Corporation, Forsyth Barr, Hotel Grand Chancellor and CTV buildings. The Expert Panel made a series of recommendations which the Department expects will lead to legislative changes, influencing the way that buildings are designed and constructed in the future. The Police and the Institution of Professional Engineers are considering the report and the Department also urged local councils to take it into account when devising their own earthquake response policies. The Department is now reviewing the structural soundness of a further 352 buildings in Auckland, Christchurch and Wellington, and estimates that approximately 130 of those buildings would present a safety risk in the event of an earthquake. Auckland Council has independently assessed 1,400 buildings, and will continue working through its list of potentially earthquake-prone buildings over the next four years.
In addition, the Canterbury Earthquakes Royal Commission of inquiry was established in May 2011 to report on the causes of building failure, as well as the legal and best-practice requirements for buildings in New Zealand’s Central Business Districts. The Commission's final report must be delivered to the Governor-General by 12 November 2012. As part of the investigation, a public hearing lasting up to 5 weeks will be held beginning in June 2012 to ascertain why the CTV Building collapsed. The findings in the Technical Investigation report will be contested during this hearing.
These reviews have had a ripple-effect in other sectors. We are aware of private building owners and occupiers commissioning engineering firms and insurance companies to assess whether their buildings are ‘earthquake-prone’,[1] a term used to describe buildings with strength less than 33% of the AS/NZS 1170.5:2004 seismic loading standard. In the event that a building is deemed to be ‘earthquake-prone’, there is a requirement to undertake structural works to bring the building up to at least 33% of code requirements. The time frame for completing these works is set out in each territorial authority policy. In Auckland, the Council has adopted a flexible approach, and will discuss and agree upon a course of action and timeframe for alteration with the owner of any earthquake-prone building. Buildings deemed to be ‘dangerous buildings’ will be subject to much shorter time frames.
Different degrees of compliance with the Building Code are required depending on the age and type of building in question, and the standards in place at the time of its construction. Buildings that fully complied with the relevant regulatory standards at the time of construction may still need further work undertaken. Some Councils have indicated they may require a higher standard of compliance than that prescribed by the Building Act, although questions remain over whether they can require works above the statutory minimum.
The issue of who has legal responsibility for earthquake-prone buildings can become complex for building owners and employers. In some instances, both the owner of an earthquake-prone building and a lessee/employer whose staff occupy the building have specific obligations under the Health and Safety in Employment Act. In that case, both the building owner and the employer may be liable for any hazard posed by the building.
Earthquake-strengthening works to historic buildings are potentially more complex again, as the Resource Management Act and Historic Places Act contain additional requirements. These buildings also present difficulties due to the tension between heritage preservation and public safety.
Liability for structural building works is a complicated issue and one that is likely to come further into the spotlight in the near future. If you have concerns about a building that you own or occupy, contact one of the ChanceryGreen team for advice.