19 March 2018 Ruth Hill, Senior Journalist Radio New Zealand PO Box 123, Wellington New Zealand, 6140 E-mail: Ruth.Hill@radionz.co.nz Dear Ms Hill, Official Information Act (1982) Request I write in response to your revised Official Information Act request, that we received 9 February 2018. You requested the following information: • • • Report of work commissioned by the board in 2017, looking at weather tightness issues, affecting the Scott Building, Kidz First, Super Clinic complex and the McIndoe Building. Summary of weather-tightness matters relating to buildings constructed by Hawkins for CMDHB. From beginning of 2015 to the present: Independent assessments and recommendations, risk registers, legal opinions, reports to board and chief executive on weather-tightness issues. In summary, CM Health has been aware for some time that several our buildings are affected by weather-tightness and related issues. Various reports and remedial action has been undertaken in the past, with the issues associated with the Scott Building having had greater focus than other buildings built at the same period and using the same cladding systems. Works on all of these buildings were commenced around 2000, when the Building Code allowed for use of non-treated timber and the use of direct-fixed painted compressed sheet cladding reliant on back seals. The use of these materials and methodology proved faulty (systemic failure), and resulted in widespread incidents of “leaky buildings” throughout New Zealand, causing costly remediation across all building sectors. Unfortunately, CM Health now faces significant remediation impact across the building portfolio. A range of investigations, remediation and safety measures have been adopted over the last decade. In mid-2017, CM Health commissioned an independent expert appraisal of the facilities status, from Alexander & Co. on the building previously identified with weather-tightness issues, and the extent of the moisture ingress. The comprehensive analysis undertaken by Alexander & Co have confirmed the extent of damage. This is assessed as being mainly due to systemic failure of the cladding system, in addition to shortfalls in build methods. The arrangement for the initial construction of these buildings was via Design/Build Counties Manukau District Health Board 19 Lambie Drive, Manukau, Auckland 2104 Private Bag 94052, Manukau, Auckland 2241 T: 09 276 0000 cmdhb.org.nz contracts (as opposed to just build contracts) by Hawkins Construction. Of note, the cladding used on all these buildings was legally approved/ code compliant at the time. The Alexander & Co findings Report confirmed damage to the buildings, and recommended both immediate safety measures, and ongoing monitoring requirements and that remediation works should be prioritised within the next 5 years. The Alexander & Co Report advice is based on the findings of intrusive investigations, where cladding has been removed to expose the exterior framing cavities. The test locations were random to achieve a typical spectrum of issues across the full building face. Samples were taken and tested in laboratories. We are providing a copy of the Alexander & Co independent appraisal report and support documents Appendix 1 We are providing a summary of the building status reports below. Affected building Construction date Scott Building 2000-2002 with further works in 2006 Identified issue with weathertightness 2012 Investigation, status and action to date Initial investigations in 2012 / 2013 revealed extent of damage. It is common ground that the cladding on the building has failed, resulting in water ingress and damage and that the cladding requires replacement and associated remedial work to be undertaken. Safety measures are in place to monitor the building. Kidz First 1999-2000 2013 Timber moisture contents tested varied. Evidence of significant active fungal and bacterial growth. Multiple references to brown rot and Stachybotrys. Some remedial work had been undertaken in locations, but it is not comprehensive. Superclinic complex (MESH) 2001 2012-2014 – interim repairs Timber moisture contents tested varied. Evidence of significant active fungal and bacterial growth. Multiple references to brown rot and Stachybotrys. Almost all locations tested indicated localised active leaks with decay and damage to varying extent. Affected building Construction date Identified issue with weathertightness Investigation, status and action to date The building has had a number of investigations undertaken over numerous years. Some remedial work had been undertaken in key locations but it is not comprehensive. McIndoe Building 2000-2001 2014 Timber moisture contents tested varied. There is less evidence of significant fungal and bacterial growth, but noted there was future risk of decay. References to cladisporium and dematiaceous fungus present and active fungal growth. Some areas noted Stachybotrys present in spore form. Most of the areas tested indicated remedial works undertaken using treated timber. The building has had a number of investigations undertaken over numerous years. Extensive remedial work had been undertaken in locations on a like for like basis (i.e. without a cavity), particularly on the northern face after leaks were identified. Remediation and construction works will be highly dependent on the methodology adopted. The key issue is the need for this to be undertaken with the buildings fully operational as an acute hospital facility. At this time, clinical expert advice is that provided the wall spaces are not open to ventilation into the hospital, or near to an air intake patient safety is not compromised by the fungal growth found, however the spaces would need to be vacated if the internal walls are breached. The risks associated with a failure of critical building infrastructure is reported and monitored, via the DHB organisation risk register – Appendix 2. Both the CMDHB Board and the Ministry of Health (Capital Investment Committee) are aware of the current situation, and the DHB intentions related to this situation. Reports and advice has been provided to the Board meetings since 2015. We have reviewed the papers supplied to the CMDHB Board since 2015 on these matters, and note that they were all dealt with under confidentiality. We are providing a summary of the withholding grounds for these agenda items – Appendix 3. I can confirm that CM Health issued proceedings against Hawkins Construction North Island Ltd in the High Court in 2012. In early 2017, after some lengthy negotiations that dispute was settled. The settlement was full and final, and its terms are confidential to the parties. CM Health has considered your request for further details of this matter including the terms of settlement. CM Health believes that the terms of settlement are covered by sections 9(2) (ba) (i) and (ii), and that even taking into account public interest factors, those terms should remain confidential to the parties. The settlement is recent, and protecting the relevant confidences is important. Further, it is in the public interest for DHBs to settle their disputes in a confidential commercial fashion where those terms are appropriate, fair and reasonable in the circumstances. On this basis, CM Health refuses your request for further details related to the settlement. The various records held by CMDHB pertaining to the matters impacted on by the status of these buildings are considerable, date back many years, and are located at various storage points. Should there be other specific queries you are interested in investigating, please contact Ms Margie Apa, Director Population Health Strategy & Investments in the first instance on 021 727354. I trust this information satisfactorily answers your request. If you are not satisfied with this response you are entitled to seek a review of the response by the Ombudsman under section 28(3) of the Official Information Act. Yours sincerely Gloria Johnson Chief Executive (Acting)