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1.5m fundation?!? Post a photo please.
In my understanding, height (for the purpose of evaluate height infrangement) is measured from netural ground 'critical point'. The exact critical point is estiblished by licensed surveyor.
So if the fundation is above critical point (which is normally the case when the house is build on flat ground), then the 8m include fundation.
If the fundation is below critical point (whihc is normally the case when the land have big slope), the 8m may not contain fundation.
Need see the building consent drawing plan.
In theory, as the neighbour, they need your signiture if their plan exceed height infrangement. But maybe they have found a planner that somehow came up with a workaround... don't know..
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