Mixed reaction from councils over private BCAs

Several councils have expressed concerns over the potential for conflict of interest regarding the private building consent authority model – we report on their feedback 

As previously reported by Under Construction, Building Consents Approvals Limited (BCAL) is due to become New Zealand’s first private company accredited to issue building consents. Having gained clarification from MBIE regarding BCAL’s liability, we’ve contacted several Building Consent Authorities (BCAs) to gauge their reaction.  

Auckland Council’s General Manager Building Consents, Ian McCormick, said Auckland Council “reflects on some of challenges and adverse outcomes associated with the previous introduction of a private certifiers model and expects the Government to embed far more robust controls and consumer protection measures than the ones that failed homeowners two decades ago”.  

Southland District Council Acting Group Manager Regulatory Services Vibhuti Chopra said the council is “monitoring the development of private consenting authorities with interest”. 

“As a Council BCA, we remain committed to delivering independent, risk-based regulatory decisions that prioritise building safety and the long-term performance of the built environment, not commercial outcomes,” she said.  

“Unlike private entities, our focus is not on market share or profit, but on ensuring that consenting and inspection processes serve the public good. This independence is a core strength of the current model and a safeguard for our communities.” 

A conflict of interest? 

McCormick said Auckland City Council has similar concerns about potential conflicts of interest and is worried about how that could impact the employment pool of qualified Building Consent Officers (BCOs). 

“In this case, business success for the private regulator is dependent on them competing with other private and public regulators for contracts and then delivering an outcome that encourages the client to continue using them for further consent or certification work. We believe that this is a fundamental conflict of interest that will require robust government oversight.” 

Christchurch City Council agreed that the introduction of BCAL, which has targeted Canterbury’s Selwyn District as its market entry point, could muddy the waters. 

“Councils could be left to deal with complaints or issues post-construction such as defects or non-compliant work, despite not having issued the consent,” said Head of Building Consenting Steffan Thomas. 

“There may be confusion in the industry and with property owners over who to apply to, and/or if there are inconsistencies in standards or interpretation of the Building Code between private and council BCAs.” 

Joining the dots 

Southland City Council was also worried about how administrators would work with private consenting authorities to ensure accurate and up-to-date information was recorded. 

Chopra warned: “One key concern is the potential for system fragmentation, particularly in the management of shared functions such as records, compliance schedules, and coordination between BCAs and territorial authority functions.” 

Recruitment from a small pool 

All five councils that responded to Under Construction agreed that the redistribution of talent from BCAs to private consenting authorities will pose a challenge, especially if private consenting authorities aggressively recruit from the existing workforce. 

McCormick said Consentium, a Crown entity established to process consents for Kāinga Ora developments, offered higher salaries, which created staffing instability: “This impacted our resourcing levels due to staff movements, which impacted [our] ability to deliver timely services for a period of time.” 

He added that BCAL can only recruit from a small pool of qualified professionals, which will inevitably influence BCA staffing levels. 

“Competition has been introduced for specific market segments that will be seen as higher value by private entities. Competition in these segments will require certifiers to obtain competent staff, and the only place they will find people with the right capabilities will be in existing BCAs or that small pool of suppliers of BCA technical services. The same number of professionals will be working in the field, but split across a greater number of entities. True gains will only be made when a strong training pipeline becomes available.” 

Dunedin City Council Acting Group Manager for Customer and Regulatory, Paul Henderson, acknowledged similar pressures. “Consent volumes in BCAs fluctuate year on year, and from month to month, which can create staffing and workload pressures and impact processing timeframes. The arrival of BCAL is just another factor to consider from a resourcing perspective.” 

Southland noted sector-wide scepticism about whether private BCAs will invest meaningfully in long-term staff development.  

“Council BCAs place a strong emphasis on building professional expertise and maintaining a skilled workforce, which is critical to supporting a high-performing and resilient regulatory system,” said Chopra. 

Gisborne District Council Building Services Manager Ian Petty added that staffing levels may be challenged if private building consenting authorities begin to operate in the Gisborne region. 

Cautious optimism 

Despite concerns raised by Auckland, Southland and Christchurch councils, many welcomed the Government’s focus on improving the efficiency of the building design and construction system. 

“Auckland Council supports the Government’s focus on improving the efficiency of the building design and construction system. In principle, we also support the registration of private, accredited building consent authorities,” said McCormick. 

Christchurch City Council added that it believes competition is a positive and can lead to better outcomes for customers but had questions regarding property owners’ protection. 

Thomas said: “Our position is that competition is positive, as it can drive innovation, improve efficiency, and lead to better outcomes for customers.” 

“The introduction of private BCAs may encourage improved service delivery and responsiveness across the sector,” added Thomas. “However, we are interested in understanding the liability and insurance settings to ensure property owners remain protected.” 

Dunedin City Council was pragmatically optimistic about the development: “It’s always good to see more capacity to process consents within the sector, as it helps deliver improved processing times for developers,” said Henderson. 

Gisborne District Council added that “it had no position” on the development, while Sharma said Southland Council was monitoring BCAL “with interest”. 

She said: “Understandably, there are mixed views: some are cautious about the potential for system fragmentation and downstream risks, while others are optimistic about the innovation and responsiveness that private providers may bring.”