Consent systems report: Part One

The Ministry of Business, Innovation and Employment (MBIE) has released its evaluation of the building consent system report. This is the first of four articles that explores its findings

The report was commissioned to understand how well the current consent system is aligned with its objectives and to explore the underlying causes of issues such as efficiency and effectiveness.

Under Construction has reported widely on the consenting process, with builders highlighting issues with it across the country. 

However, MBIE refuted those claims in the executive summary of the report.

“The system faces frequent criticism for being inefficient and unpredictable, adding additional costs and delays to building projects,” it stated. “However, there has been little robust evidence to support these claims and a lack of nationally consistent data about the consenting process.”

RMBA applauds MBIE

A review of the system has been called for, and praised, by industry leaders such as Master Builders Association David Kelly.

“We support and applaud MBIE for initiating a review of the consenting system. MBIE is saying it understands and accepts it needs to take responsibility to review the system, which is as it should be, because it’s unfair to leave it up to individual councils to solve the problem.”

The report gathered evidence between March and July 2021. It carried out interviews, focus groups, surveys, building site visits, reviewed existing research and analysed the current consents process. MBIE received 291 survey responses, carried out 59 interviews, held five focus groups attended by 41 industry professionals and visited sites in eight regions across New Zealand.

This is the first of four articles that will explore the findings published in the report and seek to place them into the context of the wider construction industry, applying experiences from those on the ground to the research published by MBIE.

‘Broadly aligned’ but gaps remain

MBIE found that, although the building consent system is “broadly aligned with its intent”, there are gaps in its operation.

“There was broad agreement from interviewees and survey respondents that the current system is achieving its intended outcome. This helps to provide assurance that buildings are safe, durable and healthy for building users. However, there is less certainty about whether the system is achieving its wider objectives. In particular, there was concern that the system was not supporting innovation and instead leading to an over-reliance on Acceptable Solutions.”

Respondents believed that the consent system generally works well, but that there are clear areas for improvement – illustrated by unpredictable outcomes and delays. 

“Concerns from both BCAs and the sector about unexpected delays and unpredictable outcomes indicate that the system is not working as well as intended.”

Problems with the system

MBIE’s analysis identified four underlying problems. These are presented below as they appeared in the report.

• Unprecedented level of market demand is intensifying constraints within the system.
• Increasing complexity in the building environment is contributing to gaps in capability and oversight.
• The devolved structure of the consent system contributes to unpredictability.
• Concerns about potential risk and liability are affecting the way that people carry out their role in their system.

A huge strain on the industry

The four problems are putting considerable pressure on the capacity and capability of BCAs and the construction industry. For example, the report said that the 67 different BCAs are responsible for their own policies and resourcing, which leads to unpredictable outcomes and inefficiencies in the overall system.

Other issues, such as workforce constraints and poor industry performance, have also been named as contributing factors.

“The shortage of experienced tradespeople is placing a huge strain on the sector,” added Kelly. “New Zealand hasn’t trained enough tradies and companies can’t bring enough in because of visa restrictions.” 

However, New Zealand Institute of Building Surveyors vice-president Darryl August said some builders don’t help themselves – which contributes to delays in earning consents.

“We still have a huge number of building companies and builders that are not building to the appropriate standard they should be.”

Despite those issues, the report found that there is confidence that the system is achieving its outcome and contributes to effectiveness in decision-making.

“Further consideration could be given to balancing the roles and responsibilities in the system, particularly with regard to quality assurance,” said MBIE. “This could contribute to a system that is more efficient, predictable and effective, and better able to achieve its wider objectives.”

After the publication of this report, MBIE ran a public consultation on the consent system with a deadline of 4 September.