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Government Introduces Self-Certification Scheme and Building Inspection Targets
The coalition government recently revealed its new scheme to speed up building projects in New Zealand with self-certifications and an inspection target.
Speaking to reporters, Building and Construction Minister Chris Penk announced the new scheme, allowing eligible building companies, drainlayers, and plumbers to sign off on their own work on simple homes.
The government also announced that Building Consent Authorities (BCA) must carry out 80% of inspections within 3 working days. The Ministry of Business, Innovation & Employment (MBIE) will produce new guidelines for BCAs to meet this requirement.
Opening the door to home ownership
Slow building consents have been a major hurdle for construction businesses in New Zealand, with impacts on home ownership rates. Minister Penk says that these new schemes are announced at a time when many Kiwis are priced out of the housing market.
"Making it (housing) easier and more affordable to build opens the door to homeownership for more Kiwis, gives families choice about where they live, and supports growth and job creation in the construction sector," Penk said.
"We can't achieve this vision while the building consent system remains slow and overloaded. Even simple, single-storey homes must go through around 12 inspections before they're finished, with costly delays when demand is high."
The self-certification scheme has been talked about since last year, as the government looked to streamline building consents to a more efficient system. Penk says that only professionals who meet strict eligibility criteria will be able to sign off on their own work, and only for simple residential dwellings.
"Reputable building companies delivering large numbers of near-identical houses each year will be able to proceed without the need for Building Consent Authorities (BCAs) to approve a building consent and carry out inspections," he said.
"Giving qualified plumbers and drainlayers the ability to self-certify their work puts them on equal footing with electricians and gasfitters, who've had that flexibility for years. It's a common-sense change backed by Master Plumbers and delivers on a National Party campaign promise."
According to Penk, the new scheme will initially result in 3000 new homes each year without inspection or approval roadblocks.
A welcomed announcement
The new approval timelines were long-awaited by builders and those associated with the construction industry, following many years of slow building activity.
Long wait times can cause unwanted expenses in a construction project. Residential building approval wait times can stretch up to a week, producing a knock-on effect that adds about $400 each day a project goes unapproved.
This scheme follows a series of announcements pertaining to the construction industry. In early April, the government also approved increasing the maximum size of granny flats allowed to be built without consent. This change made it easier for people to build standalone dwellings on their properties.
With construction recovery likely in June, the scheme will significantly alleviate some of the pressures faced by Kiwi builders.
According to Penk, New Zealand’s Master Builders stamped the announcement as a meaningful step in reducing inspection delays. The new scheme will also allow Building Consent Authorities to focus on higher-risk, more complex work.
"Updated guidance will be issued to BCAs, outlining practical strategies to boost efficiency, reduce bottlenecks, and help authorities better prioritise their workloads," he said.
"BCA’s success in meeting the target will be shown in quarterly performance data, giving the public greater transparency and encouraging improved performance."
Penk hopes that this extra support for skilled building professionals and the added focus on council resources will reduce building costs and deliver more homes, without compromising on quality.
The inspection requirements will come into effect later in 2025, while the self-certification scheme will be introduced by the end of the year.
Key takeaway
As builders look forward to less red tape on building approvals, scaling the business with the right risk mitigation strategies is critical. Securing projects with insurance, backed by an experienced partner, can help builders navigate their projects more efficiently and stay prepared for any incidents.
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