CSR Building Products (NZ), a unit of the ASX-listed building products maker, faces a bill of up to $NZ9.5 million after cutting a deal with the government to settle looming legal action over the nation's leaky schools.

The New Zealand unit of CSR took a $NZ9.5m provision to meet product liability claims in the 2014 financial year, having not made a similar provision in 2013, according to financial statements lodged with the Companies Office. CSR declined to say how much of the provision related to a confidential…