- Hon Chris Penk
Building system reforms are set to make construction easier, faster and more affordable while also strengthening protections for homeowners, Building and Construction Minister Chris Penk says.
"The Building Amendment Bill passed its first reading today, and will deliver the most significant building system reforms in 20 years, with the express purpose of improving regulation and supporting New Zealand industry to grow and deliver the homes and buildings we need," Mr Penk says.
"This Government is committed to fixing the basics and building the future. This bill will unlock innovation, speed up delivery, and expand housing options, all while keeping important safeguards in place."
The changes will also make it easier for Kiwis to build homes that are affordable, energy efficient, resilient, environmentally friendly, and diverse.
"At the heart of this bill is a fundamental shift to a fairer liability system for the construction sector - one which ensures accountability for building work sits where it should, while maintaining strong consumer protections."
The building system will move from joint and several liability to proportionate liability, ensuring parties are responsible only for their share of work.
"For too long, councils and other parties have been left footing the bill for defects they did not cause. We are moving toward a fairer, more sustainable approach and strengthening protections for homeowners through mandatory safeguards," Mr Penk says.
These include:
- Mandatory professional indemnity insurance for building design professionals and engineers who contribute through advice or service to the design of building work
- Mandatory home warranties for most new builds and major renovations $100,000 or more
- New offences to deter non-compliance
"These measures strike the right balance between protecting mum and dad homeowners, while driving greater accountability across the sector. They mark the most significant shift in liability settings in a generation."
Mr Penk says the bill will also address issues that make the building system slow, costly and inconsistent by removing barriers to modernise outdated settings and give those in the sector the tools they need to perform.
Further changes include:
- Improving consistency and efficiency across New Zealand's 69 Building Consent Authorities (BCAs) by enabling voluntary consolidation of BCA functions and reducing Project Information Memorandum (PIM) processing times from 20 to 10 working days
- Introducing a fast-track 10-working-day building consent pathway for new residential buildings with solar generation or other sustainable features
- Expanding the building consent exemption for granny flats, by allowing offsite-constructed dwellings to be built in advance of a PIM
- Modernising building research funding by combining the Building Research Levy with the Building Levy and introducing a more contestable funding model
"These reforms reflect the extensive engagement that we have carried out with the construction sector, insurers and warranty providers, and local government," Mr Penk says.
"We are determined to get the building and construction sector firing on all cylinders - and this bill delivers the bold changes needed to make that happen."
More information can be found at the MBIE website: Priority work programmes | Building Performance
