Reforms designed to modernise outdated rules and reduce complexity in the building consent system are underway as the Building Amendment Bill passes first reading in parliament.
The Building Amendment Bill, introduced earlier this week commencing 29 June, has now passed its first reading and been referred to select committee. The Bill proposes a range of changes to modernise New Zealand's building system.
The reforms are designed to modernise outdated rules and to reduce complexity in the building consent system. They are designed to help speed up development, reduce unnecessary costs, and provide greater certainty for builders, councils, and homeowners.
The reforms also introduce clearer roles and responsibilities across the sector, ensuring risks are shared more fairly and transparently.
Key changes introduced by the Bill include:
Fairer risk allocation
A key change is the introduction of proportionate liability. This means parties involved in defective building work would be responsible for the share of costs that reflects their contribution.
To support this change and strengthen protections for homeowners, the Bill proposes:
- Mandatory warranties for all new houses, multi-unit residential buildings up to ten metres and renovations $100,000 or above that involve restricted building work and require a building consent.
- Mandatory professional indemnity insurance for building design professionals, such as architects and engineers.
These changes are intended to create a fairer allocation of responsibility across the building system while maintaining strong consumer protections.
Faster consenting for eligible homes and PIM changes
The Bill introduces a new fast-track building consent pathway, with decisions made within 10 working days for eligible solar-equipped and sustainable homes.
The pathway would apply to residential buildings that include solar generation or meet sustainability criteria such as:
- energy efficiency
- reduced carbon emissions
- improved water efficiency
- increased climate resilience.
The Bill also reduces Project Information Memorandum (PIM) processing times from 20 to 10 working days.
Changes also expand construction options for granny flats by allowing eligible offsite-built dwellings to be constructed before a PIM is issued, supporting greater housing choice and flexibility.
Supporting councils and improving consistency
To improve consistency and efficiency across the country, the Bill makes it easier for councils to work together or combine their Building Consent Authority (BCA) services, including with stand-alone BCAs.
This is intended to reduce duplication, streamline decision-making and support more consistent outcomes across the building consent system.
Modernising building research
The Bill introduces changes to modernise how building research is funded and governed, replacing a system that has been in place for more than 50 years.
A new approach will:
- Repeal outdated legislation and integrate the Building Research Levy into a single, more streamlined system under the Building Act
- Reduce duplication and provide for building research to be funded through an integrated building levy
- Enable building research funding to be awarded through processes overseen by MBIE, which will include the use of a contestable funding mechanism
- Ring-fence research funding to ensure long-term certainty and stability to the building research sector
- Require the development of a new research strategy and a contestable research fund and the establishment of an investment advisory panel that will advise on the allocation of contestable funding to help guide future research investment decisions for the benefit of the sector
- Improve scrutiny, oversight and accountability for how research funds are invested
- Support a wider range of research organisations and providers.
The Building Research Association of New Zealand (BRANZ) will continue to play an important role in the system and remain an independent organisation. MBIE will work with BRANZ on funding arrangements to support continuity for existing activities, including research funding rounds, while a new approach is established and to provide certainty about ongoing funding.
These reforms reflect feedback from engagements with industry, councils and consumer groups, and are designed to support a more productive building sector that can deliver the homes, and infrastructure New Zealand needs.
The Bill will now progress through the Parliamentary process, including a full select committee stage where industry, stakeholders and the public will have the opportunity to provide feedback on the proposed changes.
For more information, see:
Landmark bill to improve the building system and boost growth | Beehive.govt.nz
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