Update on the Building System Legislative Reform

New Select Committee expected to report back on Building Amendment Bill by 4 March 2021

While the attention of the building industry has recently been focused on the additional exemptions introduced to Schedule 1, the Building System Legislative Reform Programme is making its way through legislative process.

The Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Bill (The Bill), which amends the Building Act 2004, is part of a programme of reforms to the building regulatory system that aims to lift the efficiency and quality of building work, and provide fairer outcomes if things go wrong.

The Bill is still with the select committee, but the submissions have been made publicly available. There were 85 submissions made from a wide range of interested parties, including BRANZ, Building Consent Authorities, and industry organisations such as the Building Officials Institute of New Zealand and Building Federation of New Zealand. Under Construction will provide a synopsis of the submissions from councils in an upcoming issue.

There were also submissions from several individuals, ranging from comprehensive suggestions on rewording to make definitions clearer, to ideas such as that builders “should all be required to wear a proper belt that holds their pants up”.

All submissions can be read in full HERE.

Since the election, the Bill has been reinstated by the new Parliament and the new Select Committee is now expecting to report back to Parliament by 4 March 2021.

MBIE will engage with the public on the next phase of work, which will include input into the development of regulations required to support the legislation from May 2021.

Listed below are other key changes included in the Bill.

Minimum product information

Manufacturers and suppliers will be required to make a minimum level of information publicly available regarding the building products that they sell. There will be duties on manufacturers and suppliers to ensure product information is not false or misleading and to provide evidence to substantiate product claims. Ideally, this will mean fewer delays during the consenting process, which will reduce time and cost for building owners.

Manufacturer certification for off-site manufacturing and prefabrication

The Bill introduces a new voluntary manufacturer certification scheme for manufacturers of off-site prefabricated and modular buildings. The certification process will involve an assessment of the whole process, from design and manufacture through to transportation and delivery to site.

The scheme would provide a shorter and more efficient consenting process for certified manufacturers, which should save time and money without compromising quality. This could lead to wider use of off-site products in the building industry.

Penalties

New offences and penalties have been created in relation to breaches of the minimum information requirements and certification of off-site products. Penalties have also increased for existing offences under the Act. The period to file charges has also been extended from six to 12 months. These changes aim to provide greater protection for building users and deter sub-standard work and poor practices within the industry.

Codemark

The CodeMark scheme will be strengthened to prevent the registration of unsuitable products by certification bodies and provide greater product assurance. The amendments seek to give MBIE greater oversight of the scheme, the right to set compliance rules and the ability to suspend or revoke a body’s ability to certify products if they do not comply with these rules.

There will also be a registration requirement for certification bodies. These changes will provide greater confidence in the CodeMark scheme for both building owners and consenting authorities.

Building levy

An increase to the scope of the Building Levy will enable MBIE to spend levy funds on activities relating to the broader oversight of the industry.