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19 Sep 2023

Advocating for Immediate Reform: New Zealand's Building Sector Challenges Upcoming Government

The Registered Master Builders Association, otherwise known as Master Builders, has called upon the next government to improve the conditions and policies surrounding New Zealand's building sector. 

In its latest Election Manifesto titled 'Building A Better New Zealand,' the builders association highlights that improving the systems surrounding the building and construction sector is 'not a nice to have, but a necessity.' 

A Sector Fraught With Policing and Inaction

The construction sector is vital to building and improving New Zealand's critical infrastructure, such as homes, schools, and hospitals. However, the industry is under pressure from a 50-year boom-bust economic cycle, productivity constraints, and consistency surrounding climate change.  

According to David Kelly, Master Builders Chief Executive, building consenting is a 20-year-long issue that seriously impacts builders' productivity. Speaking to Nine to Noon, he mentioned that good builders undergo heavy audits from multiple bodies that affect their overall efficiency. 

"With building consenting, it's all about policing rather than incentivising builders and designers to do a good job… those good players who have a very good track record, who document their systems, they can show they have design processes and quality assurance both through design and on-site - and you audit them, so if they step out of line then they're back right into the pack with everyone else." 

This inconsistency and delays in building inspection further impact their capacity to build the critical infrastructures that Kiwis need. 

"So there are weeks and weeks of delays and the same consent, or the same plan could be put into two different councils and get a quite different outcome." 

Kelly hopes the new government will offer more structure for builders and contractors,  and take actual action on the building consenting process. He also hopes for the government to consider allocating one ministry to develop housing policies – an act that has been neglected for more than 30 years.  

"We think it would be much more efficient and effective if we had one ministry that did all of that and ideally also a senior minister looking across housing, construction and infrastructure." 

More Clarity On Climate Action

Climate action is another key defining issue highlighted in the Master Builder's manifesto. The builders association acknowledges the importance of policies that help reduce emissions and waste, and understands that sustainability is the industry's way forward. 

With climate action policies, Master Builders calls for a clear and consistent policy direction from the government to improve the sector's productivity. It also hopes for an enduring waste strategy that's upheld by the new government to ensure consistency. 

When addressing climate policies, Kelly calls for the new government to consider making changes to building standards in a way that allows building manufacturers enough time to prepare. 

"In terms of how we build, in terms of things like sustainability, product sustainability, insulation of homes, et cetera… (the government needs to) do that in a thoughtful way with sufficient time for people to get ready for it. What we need from the government is the market and the regional infrastructure facilities so that it can be done across New Zealand." 

What This Means for Builders and Contractors

Now more than ever, builders need peace of mind and security at every stage of their projects. Builders in New Zealand can navigate the changing landscape by advocating for the necessary reforms, staying adaptable to the changes, and securing their business in every way possible to combat uncertainties. 

Bonded NZ provides builders with specialised insurances, surety bonds, and builders' warranties to help them complete their projects with total assurance. Our team has decades of combined experience in the construction industry, allowing us to tailor services that secure builders at every angle. 

For more information about our services, contact our team today.

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