New Policy for Relocated Buildings

New Policy for Relocated Buildings

Wednesday, June 19, 2013

Council has changed its policy on how it will manage relocated buildings in South Taranaki.
From July 1, the Council will require a ‘cash performance bond’ to be paid in advance of the relocation of the building. This will be a condition of the Resource Consent that is already required for such projects.
There have been some great relocated dwelling projects in the district, but not all ‘relocations’ have been successful. Complaints from the public about relocated dwellings remaining in poor condition have spurred the council to act and change its policy on performance bonds in such cases.
The new performance bond process will involve the council requiring payment of the value of the remedial work, plus a 25% loading to guaard against price fluctuations, before the building arrives on site. This will enable the council to use the bond money to have the work carried out, if the required upgrading works are not done within the time specified in the Resource Consent. The Council will accept performance bonds paid either as cash, or a formal guarantee from a bank. The council will also require payment for its time to administer the work if it is forced to be involved in repair work.
Planning Manager, Blair Sutherland says
“We hope to resolve a problem experienced by some residents, of relocated buildings being sited in neighbourhoods and then very little progress is made on upgrading the exterior to an acceptable standard”.
Performance bonds will be promptly refunded by the council upon satisfactory completion of the required work; Refunds can be staged as work is completed.
“Some relocated buildings require very little work, so the required performance bond value will be much smaller in such cases,” he says.