Fletcher Building criticises ‘crude’ attempt to deflect blame for pipe failures

Fletcher Building stands by its view that installation errors caused Iplex pipe failures in Perth, Australia.

BGC Homes, which installed the Typlex-1050 pipes in 7747 properties, released a report this week estimating the cost to fully repipe homes at AU$123m, based on labour rates as of 4 June.

In contrast, Fletcher set aside AU$15 million to deal with the issue.

In a statement, Fletcher said it would continue to take part in mediated discussions alongside the Western Australian government and many WA builders, including BGC, to finalise an industry response to the plumbing failures in Perth.

Fletcher said the negotiations were confidential and had not yet concluded.

In the meantime, BGC said its exposure to the problem grew at a rate of AU$3m each month, in addition to AU$1m a month to repair burst pipes, with about 110 incidents each month.

“The public claims made by BGC are a crude and apparent attempt to place pressure on those negotiations,” Fletcher said.

“The conclusions shared by BGC have not been verified, shared with Iplex and are, in many respects, inconsistent with evidence we have gathered first-hand or been provided by other parties.”

Fletcher said it would continue to play its part in coming up with an industry response to the problem.

“We do however note BGC’s acknowledgment that early intervention has proven to be a valuable mitigant, hence we look forward to settling an industry-led response with WA parties if possible,” it said.