Aussie builder BGC sues New Zealand's Fletcher Building over leaky pipes dispute (updated)

Fletcher Building

27/08/2024 08:28

(Updates with further background and details throughout)
       Aug 27 (Reuters) - Australia homebuilder Buckeridge
Group of Companies (BGC) has taken legal action against Fletcher
Building's  FBU.NZ  unit related to a dispute over plumbing
failures at 1,500 homes, the New Zealand company said Tuesday.
    The homes, 90% of which were built by BGC and partner
Delstrat and outfitted with plumbing pipes made by Fletcher's
unit, suffered leaks between mid-2017 and mid-2022.
    BGC has blamed Fletcher for downplaying the gravity of the
incident and delaying a product safety recall.
    Fletcher, though, said the leaks were due to improper
installation rather than a construction flaw in the pipes built
by it's unit Iplex Australia.
    It has previously called BGC's estimated repair cost
"sensationalist", though it has not specified the amount, and
said it had set up a A$15 million fund for repair work.
    Fletcher did not provide any details about BGC's lawsuit but
said, "Iplex AU intends to defend the proceedings."
    BGC did not immediately respond to a Reuters' request for
comments.
    Iplex Australia stopped selling that particular type of
pipes in mid-2022 after receiving multiple complaints.

 (Reporting by Adwitiya Srivastava in Bengaluru; Editing by
Sonia Cheema and Savio D'Souza)
 ((Adwitiya.Srivastava@thomsonreuters.com;))