MBIE BUILDING SYSTEM LEGISLATIVE REFORM

Have your say on NZ building laws!

MBIE is proposing major changes to our building laws to improve the quality of building work – these are the most significant reforms since the current Building Act was introduced in 2004

An efficient building regulatory system isn’t the sole responsibility of government. Everyone in the sector must work together to lift the level of quality, so things go right the first time – and, if they do go wrong, there are fairer outcomes.

Why reforms are needed

The building sector faces a number of long-standing problems. These problems range from low productivity and inefficient practices and processes, to skills and labour shortages, to poor health and safety. We’ve talked to people across the sector about problems with how the regulatory system functions. Our conversations revealed three common themes:

• Roles and responsibilities are not clear.
• Information isn’t available when it’s needed.
• It’s difficult to hold people to account for the quality of their work.

What’s in the reforms package?

These are the most significant reforms since the current Building Act was introduced in 2004. They affect people, products and practices across the sector. The proposals are summarised below. There are more details about these proposals in the full discussion paper and summaries of each part.

Building products and methods

• Clarify roles and responsibilities for building products and methods.
• Require manufacturers and suppliers to provide information about building products.
• Strengthen the framework for product certification.
• Make consenting easier for modern methods of construction including off-site manufacturing.

Occupational regulation

• Change the licensed building practitioners scheme:

1. Introduce a tiered licensing system for LBPs to establish a progression pathway, including a specific licence for supervision.
2. Simplify the licence class categories.
3. Introduce behavioural competence requirements for LBPs.

• Raise the competence standards and broaden the definition of Restricted Building Work.
• Introduce a new licensing scheme for engineers and restrict who can carry out safety-critical engineering work.
• Remove exemptions that allow unlicensed people to carry out plumbing, gasfitting and drainlaying work.

Risk and liability

• Require a guarantee and insurance product for residential new builds and significant alterations, and allow homeowners to actively opt out of it.
• Leave the liability settings for building consent authorities unchanged.

Building levy

• Reduce the building levy from $2.01 including GST to $1.50 including GST (per $1,000).
• Standardise the building levy threshold at $20,444 including GST.
• Allow MBIE to spend funds raised by the building levy on broader stewardship of the building sector.

Offences, penalties and public notification

• Increase the maximum financial penalties.
• Set different maximum penalties for individuals and organisations.
• Extend the time enforcement agencies can lay a charge from six months to 12 months.
• Modify the definition of ‘publicly notify’ in section 7 of the Building Act.

Have your say! Submissions close on 16 June 2019

MBIE will use the information from the submissions to refine its proposals. The Minister for Building and Construction will then decide what changes to recommend to Cabinet.