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Weathertight Homes Resolution Service

This output expense involves the provision of assessment and dispute resolution services, via either mediation or adjudication, for homeowners whose homes are affected by the 'leaky building syndrome'. The adjudication service includes provision for compulsory involvement and for enforceable determinations by an adjudicator appointed by the Governor-General. The dispute resolution services are an alternative option to legal action through the court system.

Performance measures Performance to 30 June 2006
Output: Claims Assessment - provide owners of leaky homes with access to an assessor's report prepared in relation to their claim. The primary statutory role of the assessment report is to provide the basis for establishing the eligibility of a claim. The assessment phase of claims is completed when the assessment report is completed and sent to the homeowner.
Forecast volumes per year:1050-1550 assessments completed 1199 assessments were completed.
Acknowledgement and accurate and timely information and advice is provided to 95 percent of applicants within 5 working days of receipt of their applications to the WHRS 98 percent of claims were acknowledged within 5 days.(Note: the calculation of this measure was modified to include those claims where verbal advice was provided within the 5-day period, in addition to claims where written advice has been provided as previously calculated)
85 percent of assessments of claims of single homes are completed within 6 months of receipt of their application 91 percent of assessments were completed within 6 months
85 percent of assessments of claims from multi-dwelling complexes are completed within 12 months of receipt of their application 91 percent of assessments were completed within 12 months

Output: Dispute Resolution - including:

  • mediation of claims - provide a mediation service for homeowners with eligible claims. The claimant and any of the other parties to the claim may agree to refer the claim to mediation, with provision for binding settlements by agreement.
  • adjudication of claims - provide a service whereby homeowners can have their eligible claims referred to adjudicators whose determinations, subject to appeal, are binding and enforceable.
Forecast volumes per year: 800-1200 claims processed to 'mediation-ready' status. 'Mediation-ready' is defined as notification to the claimant that the claim is ready to proceed to mediation

308 claims were processed. The number of claims processed to 'mediation-ready' status was significantly less than forecast due to a decline in the number of claimants electing mediation. This is attributable to home-owners in multi complexes not electing mediation as expected, with many of these claims 'on hold' waiting for claimants to decide on a resolution option.

(Note: the definition of 'mediation-ready' was clarified to give effect to the intent of the measure to assess performance of the case management function. Claims are now counted as 'mediation-ready' at the time of appointment of the mediator)

80 percent of claims processed to 'mediation-ready' within 6 months of the claimant electing mediation and fee paid

76 percent of claims were processed. Some multi complex claims took longer to group together and progress.

(Note: the change in definition of 'mediation-ready' as described above)

100 percent of hearings completed within 35 working days of the last written response from respondents to the adjudication claim (other than where further time has been agreed by the parties) 100 percent of hearings were completed within 35 days

 

Financial Performance
(figures are GST exclusive)
2006 Actual
$000
2006 Main
Estimates
$000
2006
Supplementary
Estimates
$000
2005 Actual 2
$000
Revenue - Crown 17,575 17,689 17,575 -
Revenue - departmental 36 - 50 -
Revenue - other 88 - 114 -
Total revenue 17,699 17,689 17,739 -
Total expenses 15,721 17,689 17,739 -
Net surplus/(deficit) 1,978 - - -

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 2 2005 Actual not reported here as the Weathertight Homes Resolution Service was transferred from the Department of Internal Affairs to the Department of Building and Housing with effect from 1 July 2005.