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Removing Council Inspections: Government’s Plans to Streamline Building Consent
The coalition government is making plans to streamline the building consent process by allowing trade professionals to sign off on their work without needing council inspection.
In a recent press statement in Auckland, Building and Construction Minister Chris Penk revealed that the government was looking to replace the existing council inspection process for certain projects with a self-certification scheme. This would allow the construction process to be sped up.
The new scheme will be applicable to building professionals, such as plumbers, drain layers, and builders working on low-risk projects, as well as those who have professional indemnity insurance.
Additionally, Penk mentioned that builders who have large-scale operations will remain accountable for their work under the new scheme, and that it will factor in the company’s existing track records.
"Those that can be trusted to do well because they have been doing good work already with a strong track record to prove it, will be able to be trusted more than those... who don't have a good record, large or small," Penk said.
Penk also says that the proposed opt-in self-certification scheme would go through a robust consultation process in two stages. These changes are expected to cover small and large homebuilding businesses that build near-identical homes in New Zealand.
"The first is that qualified building professionals, such as plumbers, drain layers and builders, will be able to self-certify their own work, for low risk builds, without the need for an inspection. This brings them in line with electricians and gasfitters who can already do this and is something the industry has been calling for, for years,”
"The second pillar is that businesses with a proven track record - for example, group homebuilders who build hundreds of nearly identical homes a year - will be able to go through a more streamlined consent process.
Building professionals are already subjected to strict quality assurance processes, like having a license, keeping work records, and listing their details on a public database. This new scheme would put in additional safeguards, such as:
- Allowing customers to remedy poor work easily
- Posing stricter qualification requirements for building professionals
- Imposing strict disciplinary actions
"We will make detailed policy decisions in the new year following thorough consultation, which will consider what residual role existing Building Consent Authorities should have in the self-certification scheme, for example, through an auditing function,” Penk said.
A flexible system needed for building consent
Currently, building consents are issued by a building consent authority, such as a local and district council, a private company, or a regional council. While this process ensured the safety and standards of New Zealand homes were kept high, they were not without issues.
For example, the average time to build a home in New Zealand is 19 months. Although there has been a drop in construction costs recently, it’s still costing the country 50% more to build a house than Australia.
According to Penk, this system and its red tape have not been beneficial for the New Zealand public.
"The building consent system is intended to protect homeowners from defective building work by requiring work to be inspected and consented to by a Building Consent Authority”
“But the regime is inefficient and adds cost and time to the build process, which makes it harder for Kiwis to realise their dream of homeownership. It takes on average 569 days for a home be built and consented [to] - amid a housing shortage, that is simply too long to wait"
"At the moment, a single-story basic home might go through 10 or more separate inspections. This is clearly too many, and the cost-benefit has become unbalanced."
The building and construction sector plays a critical role in New Zealand’s social and economic growth, providing job employment, housing, and commercial buildings for businesses and society. With this initiative, the government hopes to improve the number of homes built.
"Kiwis need confidence in the safety and quality of their homes, but it's possible to do this through a more streamlined assurance pathway. We are committed to cutting through the tangle of red tape so that we can get more Kiwis into the quality homes they deserve."
Proposal a “grave cause for concern”: Home Owners President
The new scheme has drawn some reservations since its announcement. John Gray, the Home Owners and Buyers Association (HOBANZ) President, states that certain aspects of the proposal were a “grave cause for concern”.
"This trusted professional accreditation is probably one of the worst aspects... It needs to be very robust, and we need to see the detail," said Gray.
Gray also states that ensuring builders are held responsible for doing quality work was key. He suggested that strict penalties were imposed under this new scheme for builders and professionals who did not meet the standards.
“There must be appropriately weighted civil or criminal sanctions to be applied to those individuals, the companies, and their executives who fail New Zealand consumers when it comes to building houses," he said
Key takeaway
Speeding up home builds, ensuring good customer protection, and having qualified tradespeople are the primary focus for the government in the months to come. Professional indemnity insurance, guarantees, and bonds have become more important than ever for building professionals to apply for the self-certification scheme.
With the right insurance, builders can streamline the building process for their clients and increase their reputation.
Bonded NZ helps builders and contractors find the best insurance, warranties, and surety bonds that keep their best interests in mind. Whether it's a big or small project, our cost-effective options help them secure their projects at every angle.
For more information about our services, contact our team today.