Latest news with #BCAs
Scoop
8 hours ago
- Business
- Scoop
Property Council Welcomes Landmark Building Consent Reforms
Property Council New Zealand has welcomed today's announcement from the Government, describing the reforms as a pragmatic step toward a more consistent and accountable building system. Chief Executive Leonie Freeman said the move to replace joint and several liability with a proportionate liability model, alongside enabling voluntary consolidation of Building Consent Authorities (BCAs), addresses long-standing issues that have created cost and delay in the sector. 'Joint and several liability has often left councils as the last man standing. Proportionate liability changes this – a shift that the development community supports,' Freeman said. 'Spreading accountability more fairly across the construction pipeline should ease pressure on councils and provide greater certainty for the market. We expect this will also help reduce the risk-averse behaviour that slows down consenting and drives up costs.' Freeman noted that Property Council members are prepared to play their part. 'Our members are open to sharing liability if it gives councils greater confidence and improves consistency. The detail around mechanisms such as professional indemnity insurance and home warranties will be important for ensuring clarity.' On BCA consolidation, Freeman said the change could help remove unnecessary complexity. 'Sixty-six different interpretations of the Building Code create inconsistency and duplication. A regionalised model could help streamline processes, but its success will depend on councils' willingness to work together.' Freeman said the reforms build on earlier moves to improve access to new building products. 'Addressing both consenting and liability settings is a step in the right direction. These changes have the potential to remove blockages, reduce costs, and provide a more predictable system for everyone involved in the building process.' About Property Council New Zealand Property Council is the leading advocate for Aotearoa New Zealand's largest industry – property. Property Council New Zealand is the one organisation that collectively champions property. We bring together members from all corners of the property ecosystem to advocate for reduced red tape that enables development, encourages investment, and supports our communities to thrive. Property is New Zealand's largest industry, making up 15% of economic activity. As a sector, we employ 10% of New Zealand's workforce and contribute over $50.2 billion to GDP. A not-for-profit organisation, the Property Council connects over 10,000 property professionals, championing the interests of over 550 member companies. Our membership is broad and includes some of the largest commercial and residential property owners and developers in New Zealand. The property industry comes together at our local, national and online events, which offer professional development, exceptional networking and access to industry-leading research. Our members shape the cities and spaces where New Zealanders live, work, play and shop.
Scoop
8 hours ago
- Business
- Scoop
Biggest Building Consent System Reform In Decades
Minister for Building and Construction The Government is announcing the biggest change to the building consent system since the Building Act came into force in 2004, Building and Construction Minister Chris Penk says. 'The building sector has the potential to be an economic powerhouse, yet productivity has stalled since 1985 despite major advances in building methods and technology,' Mr Penk says. 'New Zealand's sluggish consenting system is delaying projects and driving up costs, making the average standalone house here 50 percent more expensive to build than in Australia. 'We must eliminate system blockages to speed up the delivery of new homes and infrastructure. "Today, we are announcing plans to ease the cost burden on ratepayers for defective building work. "Right now, councils are hesitant to sign off on building consents and inspections because they could be held liable for all defects, leaving ratepayers to foot the bill. 'This often happens when one of the parties responsible cannot pay for repairs, for example, if a business goes bust. 'Currently, building owners can claim full compensation from any responsible party – and it's often councils, with the deepest pockets and no option to walk away, that end up paying out. 'The risk-aversion this creates leads to frustrating delays and extra cost for builders and homeowners. 'A case in Queenstown shows the scale of this issue. In 2015, the Oaks Shores body corporate filed a $160 million claim for weathertight defects. The developer had been placed into voluntary liquidation and was not sued, leaving ratepayers exposed to the entire claim. 'If the case hadn't been settled privately, ratepayers could have faced rates increases of $300 a year for 30 years. 'It's time to put the responsibility where it belongs. "The Government will scrap the current framework, known as joint and several liability, and replace it with proportionate liability. 'Under this new model, each party will only be responsible for the share of work they carried out. 'Building owners will be protected if things go wrong and we're exploring options such as requiring professional indemnity insurance and home warranties, similar to arrangements in Australia. 'The second major change I am announcing will allow councils to voluntarily consolidate their Building Consent Authorities (BCAs) functions with each other. 'It is ridiculous builders, designers and homeowners must navigate 66 different interpretations of the Building Code, because of the number of council BCAs across the country. 'Builders can be rejected on paperwork that would be accepted by a neighbouring authority simply because each BCA applies the rules differently. 'Many councils have asked for this and I expect they will seize the opportunity to consolidate, share resources like building inspectors and IT systems, and pass the savings on to ratepayers. 'Clearing blockages in the building consent system to make it easier and more affordable to build is an important part of this Government's economic growth plan. 'We know the sector is behind us. New Zealand Certified Builders have said that this is the most significant change for the building industry in a generation, that it has been a long time coming and the change is welcomed by the industry. 'We are determined to get the building and construction sector firing on all cylinders, and that requires bold change. 'This Government is making that change.' Q&A sheet and list of Government building initiatives. Changes to liability settings and measures to enable voluntary BCA consolidation will be made by amending the Building Act 2004. The Government expects to introduce a Bill to Parliament in early 2026. The Government is investigating supporting mechanisms for proportionate liability. These may include: Regulatory changes to support BCA consolidation will include removing the requirement for a Territorial Authority (TA) to be a BCA providing they transfer their building control functions to another accredited BCA, removing restrictions on TAs transferring their building consent functions to a non-TA organisation, and updating and standardising regulations to eliminate duplication and incentivize collaboration.
Otago Daily Times
18 hours ago
- Business
- Otago Daily Times
Govt announces big changes for building consents
The coalition government is scrapping the building consents regime to ease the liability load on local councils. Building and Construction Minister Chris Penk said today the regime is "sluggish" and holding the building sector back. "Right now, councils are hesitant to sign off on building consents and inspections because they could be held liable for all defects, leaving ratepayers to foot the bill. "This often happens when one of the parties responsible cannot pay for repairs, for example, if a business goes bust." Penk said building owners could currently claim full compensation from any responsible party and it was often councils, with the deepest pockets and no ability to walk away, that ended up footing the bill. "The risk-aversion this creates leads to frustrating delays and extra cost for builders and homeowners." The government is scrapping the existing 'joint and several liability' regime in favour of a 'proportionate liability' one. Under the new model, each party will only be responsible for the share of work they carried out. "Building owners will be protected if things go wrong and we're exploring options such as requiring professional indemnity insurance and home warranties, similar to arrangements in Australia," Penk said. "In terms of looking across the Tasman, we can copy their homework on it to a large extent. We can learn from Australia's lessons in a positive way." The minister pointed to a 2015 case in Queenstown, where the the Oaks Shores body corporate filed a $160 million claim for weathertight defects as an example of system failure. "The developer had been placed into voluntary liquidation and was not sued, leaving ratepayers exposed to the entire claim. "If the case hadn't been settled privately, ratepayers could have faced rates increases of $300 a year for 30 years. It's time to put the responsibility where it belongs," Penk said. Councils get the green light to consolidate The government also announced it will allow councils to voluntarily consolidate their Building Consent Authority (BCAs) functions with each other. "It is ridiculous builders, designers and homeowners must navigate 67 different interpretations of the Building Code, because of the number of council BCAs across the country," Penk said. "Builders can be rejected on paperwork that would be accepted by a neighbouring authority simply because each BCA applies the rules differently." Many councils had asked for the ability to consolidate, he said. "I expect they will seize the opportunity to consolidate, share resources like building inspectors and IT systems, and pass the savings on to ratepayers. "We know the sector is behind us. New Zealand Certified Builders have said that this is the most significant change for the building industry in a generation, that it has been a long time coming and the change is welcomed by the industry." These changes would reduce the cost of building as the delays now were with building consents being issued, he said. "If you reduce that delay you get better productivity." 'Massive impact' Building Industry Federation chief executive Julien Leys told RNZ's Midday Report programme a shift to proportionate liability in the building consents system would have a "massive" impact on the sector. "We're going to see builders that will have to have mandatory insurance, there'll be auditing. That risk is going to be transferred. That means the councils will not be living under this fear of litigation and ultimately that's going to enable much faster, more efficient processing of consents." Leys supported the move to open up consolidation for the country's BCAs. "I think the move is going to be to say, look we've got 67 Building Consent Authorities in the country - far too many - and we're seeing far too much inconsistency between those councils. "Let's look at the options: we can either get those councils to consolidate, bring their resources together, we could have one big overarching national point of contact. "I think the drive is to have consistency and reduce time. One of the options was to ensure we actually have 80 percent of consenting done in three days. It's going to speed up the whole process and bring down cost." The building sector would welcome any changes that made it easier and cheaper to build, Leys said. "It has certainly been a tough period that's highlighted the fact that we need efficiencies in the sector. It's been 21 years since we've had any major reforms of the code as well so it's timely. "Anything where we can address cost and delays is welcome. I say bring it on." High eligibility standards, mandatory insurance and ongoing auditing and bigger fines for non-compliance would ensure the changes didn't lead to another leaky homes crisis, he said.
Otago Daily Times
18 hours ago
- Business
- Otago Daily Times
Major shake-up of building consents
The coalition government is scrapping the building consents regime to ease the liability load on local councils. Building and Construction Minister Chris Penk said today the regime is "sluggish" and holding the building sector back. "Right now, councils are hesitant to sign off on building consents and inspections because they could be held liable for all defects, leaving ratepayers to foot the bill. "This often happens when one of the parties responsible cannot pay for repairs, for example, if a business goes bust." Penk said building owners could currently claim full compensation from any responsible party and it was often councils, with the deepest pockets and no ability to walk away, that ended up footing the bill. "The risk-aversion this creates leads to frustrating delays and extra cost for builders and homeowners." The government is scrapping the existing 'joint and several liability' regime in favour of a 'proportionate liability' one. Under the new model, each party will only be responsible for the share of work they carried out. "Building owners will be protected if things go wrong and we're exploring options such as requiring professional indemnity insurance and home warranties, similar to arrangements in Australia," Penk said. "In terms of looking across the Tasman, we can copy their homework on it to a large extent. We can learn from Australia's lessons in a positive way." The minister pointed to a 2015 case in Queenstown, where the the Oaks Shores body corporate filed a $160 million claim for weathertight defects as an example of system failure. "The developer had been placed into voluntary liquidation and was not sued, leaving ratepayers exposed to the entire claim. "If the case hadn't been settled privately, ratepayers could have faced rates increases of $300 a year for 30 years. It's time to put the responsibility where it belongs," Penk said. Councils get the green light to consolidate The government also announced it will allow councils to voluntarily consolidate their Building Consent Authority (BCAs) functions with each other. "It is ridiculous builders, designers and homeowners must navigate 67 different interpretations of the Building Code, because of the number of council BCAs across the country," Penk said. "Builders can be rejected on paperwork that would be accepted by a neighbouring authority simply because each BCA applies the rules differently." Many councils had asked for the ability to consolidate, he said. "I expect they will seize the opportunity to consolidate, share resources like building inspectors and IT systems, and pass the savings on to ratepayers. "We know the sector is behind us. New Zealand Certified Builders have said that this is the most significant change for the building industry in a generation, that it has been a long time coming and the change is welcomed by the industry." These changes would reduce the cost of building as the delays now were with building consents being issued, he said. "If you reduce that delay you get better productivity." 'Massive impact' Building Industry Federation chief executive Julien Leys told RNZ's Midday Report programme a shift to proportionate liability in the building consents system would have a "massive" impact on the sector. "We're going to see builders that will have to have mandatory insurance, there'll be auditing. That risk is going to be transferred. That means the councils will not be living under this fear of litigation and ultimately that's going to enable much faster, more efficient processing of consents." Leys supported the move to open up consolidation for the country's BCAs. "I think the move is going to be to say, look we've got 67 Building Consent Authorities in the country - far too many - and we're seeing far too much inconsistency between those councils. "Let's look at the options: we can either get those councils to consolidate, bring their resources together, we could have one big overarching national point of contact. "I think the drive is to have consistency and reduce time. One of the options was to ensure we actually have 80 percent of consenting done in three days. It's going to speed up the whole process and bring down cost." The building sector would welcome any changes that made it easier and cheaper to build, Leys said. "It has certainly been a tough period that's highlighted the fact that we need efficiencies in the sector. It's been 21 years since we've had any major reforms of the code as well so it's timely. "Anything where we can address cost and delays is welcome. I say bring it on." High eligibility standards, mandatory insurance and ongoing auditing and bigger fines for non-compliance would ensure the changes didn't lead to another leaky homes crisis, he said.
RNZ News
21 hours ago
- Business
- RNZ News
Watch: Major shake-up of building consents announced
The coalition is scrapping the building consents regime to ease the liability load on local councils. Building and Construction Minister Chris Penk said the regime is "sluggish" and holding the building sector back. "Right now, councils are hesitant to sign off on building consents and inspections because they could be held liable for all defects, leaving ratepayers to foot the bill," Penk said. "This often happens when one of the parties responsible cannot pay for repairs, for example, if a business goes bust." Penk said building owners could currently claim full compensation from any responsible party and it was often councils, with the deepest pockets and no ability to walk away, that ended up footing the bill. "The risk-aversion this creates leads to frustrating delays and extra cost for builders and homeowners," Penk said. The government is scrapping the existing 'joint and several liability' regime in favour of a 'proportionate liability' one. Under the new model, each party will only be responsible for the share of work they carried out. "Building owners will be protected if things go wrong and we're exploring options such as requiring professional indemnity insurance and home warranties, similar to arrangements in Australia," Penk said. The minister pointed to a 2015 case in Queenstown, where the the Oaks Shores body corporate filed a $160 million claim for weathertight defects, as an example of system failure. "The developer had been placed into voluntary liquidation and was not sued, leaving ratepayers exposed to the entire claim," Penk said. "If the case hadn't been settled privately, ratepayers could have faced rates increases of $300 a year for 30 years. It's time to put the responsibility where it belongs." The government has also announced it will allow councils to voluntarily consolidate their Building Consent Authority (BCAs) functions with each other. "It is ridiculous builders, designers and homeowners must navigate 67 different interpretations of the Building Code, because of the number of council BCAs across the country," Penk said. "Builders can be rejected on paperwork that would be accepted by a neighbouring authority simply because each BCA applies the rules differently." Chris Penk said councils will also be allowed to voluntarily consolidate their Building Consent Authority (BCAs) functions with each other. Photo: RNZ / Samuel Rillstone Penk said many councils had asked for the ability to consolidate. "I expect they will seize the opportunity to consolidate, share resources like building inspectors and IT systems, and pass the savings on to ratepayers," he said. "We know the sector is behind us. New Zealand Certified Builders have said that this is the most significant change for the building industry in a generation, that it has been a long time coming and the change is welcomed by the industry." Building Industry Federation chief executive Julien Leys told Midday Report a shift to proportionate liability in the building consents system would have a "massive" impact on the sector. "We're going to see builders that will have to have mandatory insurance, there'll be auditing. That risk is going to be transferred. That means the councils will not be living under this fear of litigation and ultimately that's going to enable much faster, more efficient processing of consents," Leys said. Leys was supportive of the move to open up consolidation for the country's 67 BCAs. "I think the move is going to be to say, look we've got 67 Building Consent Authorities in the country, far too many, and we're seeing far too much inconsistency between those councils. "Let's look at the options: we can either get those councils to consolidate, bring their resources together, we could have one big overarching national point of contact. "I think the drive is to have consistency and reduce time. One of the options was to ensure we actually have 80 percent of consenting done in three days. It's going to speed up the whole process and bring down cost." He said the building sector would welcome any changes that made it easier and cheaper to build. "It has certainly been a tough period that's highlighted the fact that we need efficiencies in the sector. It's been 21 years since we've had any major reforms of the code as well so it's timely. "Anything where we can address cost and delays is welcome. I say bring it on." Leys said high eligibility standards, mandatory insurance and ongoing auditing and bigger fines for non-compliance would ensure the changes didn't lead to another leaky homes crisis. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
