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