Providing legal advice and services for those affected by the Public Works Act 1981 (PWA)

What is the Public Works Act 1981?

The Public Works Act 1981 in New Zealand allows the Crown (being the Government) and local authorities to acquire private land for public works such as roads, bridges, schools, hospitals, and other infrastructure projects. This Act enables the Crown (for Government work) and local authorities (for local work) to exercise the right of eminent domain, meaning that they can take private property for public use after compensating the owner. The Act is administered by Toitū Te Whenua – Land Information New Zealand (LINZ).

How can the PWA affect Homeowners?

The impact on homeowners can vary depending on the specific situation, but the following are some of the ways the Public Works Act 1981 can affect homeowners:

  • Property acquisition: The Crown or local authority can acquire the homeowner’s property if it is deemed necessary for a public work. In such cases, the homeowner is entitled to fair and reasonable compensation for the loss of their property.
  • Restrictions on use of property: If the homeowner’s property is affected by a public work, they may face restrictions on the use of their property, such as access restrictions or limitations on the types of activities they can carry out including any additions, alterations or redevelopment without first obtaining consent from the Crown or local authority.
  • Decreased property value: In some cases, a public work may negatively impact the value of a homeowner’s property, either due to the physical changes to the property or the restrictions on its use.

Overall, the Public Works Act 1981 can impact homeowners in different ways, but the Crown or local authority is obligated to compensate the homeowner for any loss or damage that results from a public work.

How can the PWA affect Business Owners?

The Public Works Act 1981 can have significant impacts on business owners. As with homeowners, the Crown is obligated to compensate business owners for any loss or damage resulting from a public work project.

The PWA can affect business owners similarly to how it impacts homeowners, with some additional considerations.

  • Property acquisition: If a business owner’s property is deemed necessary for a public work project, the Crown may acquire the property through eminent domain and compensate the owner for the loss. This could potentially result in the displacement of the business and the need to find a new location, which could incur significant costs and disruptions.
  • Restrictions on use of property: A public work could result in restrictions on the use of a business owner’s property, such as limited access or reduced parking availability. This could impact the day-to-day operations of the business and potentially reduce its revenue.
  • Decreased property value: Similar to homeowners, a public work could negatively impact the value of a business owner’s property and potentially reduce its value.
  • Business disruption: If a business owner’s property is affected by a public work, they could face disruptions to their operations during construction. This could result in decreased revenue and potential losses.

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What should I do if my property is impacted by a Public Works Act project?

You may have heard scuttlebutt through local news networks or community groups about a proposed public work. This is your best opportunity to get involved in the process and influence the final outcome, as the Requiring Authority (being the organisation that plans to obtain the land for a project) may consult with the community to gain feedback on its proposal before lodging its Notice of Designation.

Before a public works project is approved for construction, the Requiring Authority will issue a Notice of Designation. A Notice of Designation is a document issued under the Public Works Act 1981 that declares that a defined area of land is being designated for a public work project. The notice of designation is the first step in the acquisition process under the Public Works Act 1981 and serves to inform the owner of the land that their property may be acquired for a public work.

The notice of designation outlines the details of the proposed public work, the area of land that is being designated, and the rights and obligations of the owner. It may also provide information on the compensation that might be payable to the owner and the time frame within which they can make a claim for compensation.

Receiving a notice of designation is a significant event for the owner of the land as it indicates that their property may be acquired for a public work. You may still have the opportunity to make submissions once the Notice of Requirement is lodged.

You can:

  • Make a submission to the Requiring Authority proposing a viable alternative to their proposed plan
  • Consider working with a group of similarly affected landowners
  • Obtain professional legal advice

Read More: Your options when Private Property is required for Public Works

If your property is impacted by a project approved for construction under the Public Works Act 1981, here are some steps you can take:

  1. Contact the relevant authority: Get in touch with Toitū Te Whenua – Land Information New Zealand (LINZ) – the Crown agency responsible for the public works project – to understand how it will impact your property and what compensation you may be entitled to.
  2. Review your rights: Familiarise yourself with your rights under the Public Works Act 1981 and the process for claiming compensation.
  3. Seek legal advice: Consider seeking legal advice from a specialist property lawyer to ensure you understand your rights and the compensation you may be entitled to.
  4. Negotiate compensation: Work with LINZ to negotiate a fair and reasonable compensation package for the loss or damage to your property or business. Most land acquisitions for public works are done through a negotiated agreement under s17 of the Act. Where an agreement cannot be reached, your land could be compulsorily acquired under s23 of the Act. As well as offering advice, our specialist property lawyers can assist with these negotiations on your behalf.

It’s important to note that the negotiation and compensation process can be complex, and seeking legal advice is recommended to ensure that your rights are protected and that you receive a fair and reasonable compensation package.

Read More: What are my entitlements when my land is to be acquired for Public Works?

How can Wynyard Wood help?

Our expert property lawyers can assist you in a number of ways if your property is impacted by a public work:

  1. Reviewing your rights: we can review the details of the public work and the notice of designation and advise you on your rights and obligations under the Public Works Act 1981.
  2. Negotiating compensation: we can assist you in negotiating a fair and reasonable compensation package for the loss or damage to your property. We can also advise you on any other compensation you may be entitled to, such as compensation for business disruption or loss of income.
  3. Making a claim: If you are not satisfied with the compensation offered, we can assist you in making a claim in the appropriate forum (being the Court or Land Valuation Tribunal). We can also advise you on the process and the legal requirements for making a claim.
  4. Representation: we can offer legal representation for you in negotiations and court proceedings and advocate on your behalf to ensure your rights are protected and that you receive a fair and reasonable compensation package.

An experienced property lawyer can provide valuable assistance if your property is impacted by a public works project under the Public Works Act 1981 in New Zealand. They can advise you on your rights and obligations, assist in negotiating compensation, and represent you in legal proceedings if necessary.

Contact Wynyard Wood

Our Public Works Law Specialists