Govt cuts PIM wait times

The Government has announced changes to reduce the time councils can take to issue Project Information Memorandums 

On June 17, Building and Construction Minister Chris Penk and Local Government Minister Simon Watts announced the government is halving the amount of time councils can take to issue Project Information Memorandums (PIMs), from 20 working days to 10 working days. 

Chris Penk said the change was aimed at helping building work get underway faster by reducing delays in the early stages of a project. 

“We know time is money when building a home, and long wait times can quickly drive-up costs, delay projects, and frustrate homeowners who are simply trying to get building underway,” he said.  

Penk also said the current system could undermine competition in the building consent market, as private Building Consent Authorities (BCAs) are required to obtain PIMs from councils before they can progress work. If those applications are delayed, private providers can also be slowed down. 

What a PIM does 

A PIM provides information about land and other legislative requirements that may be relevant to proposed building work.  

It can include details about special features of the land, potential natural hazards, existing stormwater or wastewater systems, heritage status, required authorisations and whether building work may proceed subject to a building consent and any other necessary approvals. 

Applying for a PIM is optional for work that needs a building consent under the Building Act 2004, but government guidance says it is recommended. An owner, or their agent, can apply to the territorial authority for the district where the proposed building work will be located. 

While a PIM is optional for work requiring a building consent, only territorial authorities (councils) can issue one. Where a building consent application is lodged with a private BCA, the private BCA must obtain the PIM from the relevant council before it can progress the application. Because this happens directly between the private BCA and the council, applicants may not realise councils remain involved in that part of the process. 

PIMs have attracted increased attention following the Government’s introduction of the new granny flat building consent exemption, which requires homeowners to obtain a PIM before construction can begin. Under the proposed changes, the statutory timeframe for issuing a PIM for an eligible granny flat would be halved. However, the change would have no impact on competition between building consent authorities, as only a PIM is required under the exemption, meaning private BCAs would not be involved in the process. 

Benefits to extend beyond construction 

As well as supporting the construction sector, Penk said the reducing PIM processing timeframes would be particularly beneficial to NZ’s agriculture sector. 

“It will help farmers and rural businesses to respond faster to market opportunities, environmental requirements, and operational needs,” he said. 

Simon Watts claims the change aligns with the government’s wider push for councils to focus on efficient delivery of core services. 

“Our Government is focused on councils getting back to the basics, ensuring they are delivering core services efficiently and improving outcomes for the communities they serve,” he said.