Insulation transition extended

Following a consultation, the Ministry of Business, Innovation and Employment (MBIE) has extended the time to comply with new wall, floor and roof insulation requirements in new homes by a further six months to 1 May 2023

In November 2021, the Acceptable Solution H1/AS1 Fifth Edition and Verification Method H1/VM1 Fifth Edition set out compliance pathways to meet new minimum insulation requirements for new housing as stated in clause H1 Energy Efficiency of the New Zealand Building Code.

In a letter to ministers, the Registered Master Builders Association (RMBA) argued against implementing the changes in November 2022, despite agreeing with them in general. It voiced concerns that the “short” timeline would negatively impact the already severely disrupted supply chain, not provide sufficient time for current manufacturing methods to meet updated H1 requirements (especially for windows), and add additional cost at a time when prices are already rapidly rising – among others.

Due to concerns raised within the construction industry, MBIE held a consultation to extend the transition period by six months. The consultation received more submissions than any Building Code consultation to date and an extension to 1 May 2023 has been confirmed.

No extension for windows and doors

However, it does not cover window and door insulation – which will continue to see a staged implementation process.

MBIE said: “For window and door insulation, construction in the upper North Island (climate zones 1-2) will keep to the previous timeline, requiring an interim minimum R value of 0.37 by 3 November 2022, and further requiring a minimum R value of 0.46 by 2 November 2023.”

Across the rest of the country (climate zones 3-6) there will be an interim increase. By 3 November 2022, insulation needs to have a minimum R value of 0.37. By 1 May 2023, it will increase to R0.46 (zones 3-4) and R0. 50 (zones 5-6). By 2 November 2023, windows and doors in new housing will be required to meet increased performance levels for all parts of the country.

The decision to increase the transition period for some areas was a reflection of MBIE’s desire not to penalise those who have managed to prepare for the change within the original timeframe.

“Extending the transition period for changing to using these window types [for the entire country] would penalise companies that had prepared for the transition period in favour of those that had not,” said Dr Dave Gittings, Manager

Building Performance and Engineering at MBIE. “This is why we haven’t applied the same blanket extension for windows and doors and will be progressing with a slight amendment to the previously communicated staged approach.” 

A break for builders

The extension to the deadline for new wall, floor and roof insulation requirements has been made to ease the pressure on the residential building sector, added Gittings.

“Parts of the sector have told us they need some more time to prepare for the increase in insulation (and) there were some significant concerns raised by key parts of the system about keeping to this date.”

Builders and building consent authorities were strongly in favour of the transition period.

“We’re pleased with the outcome, as it provides the wider industry more time to develop solutions and products to meet the new requirements, especially at a time of unprecedented construction demand that the industry is currently experiencing,” Ben Allan, Managing Director of David Reid Homes told Under Construction. 

The exclusion of windows and doors from the extension may not be what every builder wanted, but Allan supports the reasoning behind the decision.

“Exterior joinery has had two significant price increases this year already and the new standards will drive costs up again. This will increase how much it costs to build new homes, which many firms will pass on to clients. 

“However, if the supply chain is able to meet the new demand and have been preparing to supply to the new standards, it makes sense to start the implementation.”

While Allan is in favour of the new regulations, he conceded that the timing was “unfortunate”.

“Having warmer and healthier homes for New Zealanders is a good thing, so any improvements we can make to the way we build that contributes to that has to be beneficial. The timing is a little unfortunate, as we have seen probably the most significant increase in cost to build in most construction professionals’ careers. Added costs associated with improved standards at this time will be difficult for many to bear and may impact on some new home builders’ ability to proceed with their projects.”

Industry associations welcome news

The New Zealand Certified Builders (NZCB) also welcomed the delay.

“The building industry is already experiencing significant pressure from supply chain constraints, skill shortages and price escalation for building materials, in the context of ongoing high levels of building demand. Deferring the timeframe for the new insulation standards recognises that more time is needed to enable the industry to be ready to implement them effectively,” said Chief Executive Malcolm Fleming.

Registered Master Builders (RMBA) CEO David Kelly echoed Fleming’s sentiment. 

“While we are supportive of changes that will result in better homes for New Zealanders, our already stressed sector requires additional time to implement them. We wish to avoid a situation where well-intentioned policy fails at the point of implementation due to bad timing.”

Both organisations added that they would be running training programmes to help builders better understand the changes, while the RMBA called on MBIE to ramp up education efforts across the sector.

Green concerns

However, not everyone is happy. New Zealand Green Building Council Chief Executive Andrew Eagles criticised the move strongly.

“There are a raft of pressures on our industry but taking this step to progress our minimum standards is essential to the health of our people and our planet. We simply cannot afford to hold up the most important transformation our sector will ever go through.“

Eagles added that the climate implications to the delay could be damaging.

“This fiasco has highlighted the challenge we have ahead of us […] this delay ensures the record number of homes being consented will be built to dated standards, locking in hundreds of thousands of tonnes of pollution for decades to come.”