Four more years for quake-prone buildings

The Government has extended all non-lapsed earthquake-prone building remediation deadlines and brought forward a review of the earthquake-prone building systems to 2024

The review, which was originally scheduled for 2027, will focus on how well the current system is managing seismic risk in existing buildings, says Building and Construction minister Chris Penk.

“The current earthquake-prone building system was put in place in 2017, requiring buildings considered to be earthquake-prone to be remediated before set dates with nearly 500 deadlines due to expire over the next four years.

“Councils and building owners have told me that many buildings will not meet their deadlines, due to the high costs involved, further complicated by cumbersome heritage rules and ownership structures.

“The review will be extensive and consider the appropriate risk settings to protect safety, while ensuring the rules are workable to support businesses, increase economic activity and create jobs. The review will also look at the way overseas jurisdictions manage earthquake risk.”

Additionally, the review will attempt to identify barriers to remediation of earthquake-prone buildings and see how other countries in high seismic risk zones manage risk.

“While the full scope and terms of reference are still in development, it is expected that the review’s outcomes will include ensuring a regulatory approach that appropriately balances reducing life safety risk in an earthquake and the impact on building owners,” says the Ministry of Building, Innovation and Employment (MBIE).

To coincide with the review, the Government has extended all non-lapsed earthquake-prone building remediation deadlines by four years.

“However, I encourage building owners to use this time to continue to make improvements to their buildings, particularly due to the positive impacts that remediation has for insurance and their ability to get tenants,” added Penk.

The extension to deadlines will apply from 2 April 2024 and will not apply to buildings that have already passed their deadline. The changes will require an amendment to the Building Act 2004, which the Government intends to pass before the end of 2024.

Wellington mayor Tory Whanau welcomed the extension, saying the current cost of remediation work was placing an unacceptable burden on building owners.

“I met with Minister Penk earlier this year and shared the astronomical costs Wellington residents, the council and business owners are facing to strengthen buildings. Without change, there was a real risk the council would be required to close some buildings with a crippling effect on owners and the city as a whole.

“The closure of earthquake-prone buildings comes with significant social and economic costs, resulting in an often unaffordable and unsustainable position for building owners.”

Wellington-based design and build company McKee Fehl managing director Maurice Clark told RNZ that the extension made sense given the current economic climate within the building industry, with low demand and high costs combining to create an environment which worked against building owners.