Major changes to Building Act mooted

WELLINGTON: Major changes to engineering certifications and builder guarantees are in prospect if the Government’s reform of construction laws goes ahead.

The Government has announced a raft of changes to the Building Act 2004, calling it the most significant reform to the sector’s main legislation in more than a decade.

Some in the sector are critical of the present legislation, which Building and Construction Minister Jenny Salesa agreed needed to change.

‘‘It is absolutely not fit for purpose. The Building Act 2004 hasn’t really been amended in any big way over the last 15 years,’’ she said.

After almost a year consulting with the construction industry, the minister this week outlined what changes the Government hoped to make.

Changes are focused on five areas — building products, occupational regulation, risk and liability, a reduction in the building levy and harsher penalties for those who do not obey the rules.

‘‘I expect this reform to create a building sector where people understand their responsibilities and increase the number of skilled workers, where better quality means building it right first time and people are better protected if that doesn’t happen, and where people are accountable when things go wrong’’ Ms Salesa said.

The changes are open for public consultation until June 16.

The overhaul was announced two days after the Government reached an agreement with the industry to improve the sector.

Grant Florence, chief executive of the industry group Certified Builders, said changes were overdue.

‘‘There’s definitely a number of areas in there that have required attention for some time now.’’

Building products definitions would be added to the Act, and manufacturers and suppliers would be responsible for ensuring their products are fit for purpose.

‘‘It’s just around gaining clarity,’’ Mr Florence said.

‘‘[Building products] have been an area that there’s been plenty of discussion on and hasn’t had that clarity.

‘‘The propensity for imported products to turn up on our shores is only going to get greater and so having some clarity round how we manage those and ensure they’re fit for purpose will be key.’’

People would pay a guarantee premium directly through their builder or the builder would incorporate the premium into the overall cost.

The homeowner would be the ‘‘policy holder’’ of the guarantee and insurance product, allowing them to make claims directly with the guarantee and insurance provider.

Homeowners could choose to opt out, which Mr Florence said was disappointing.

MBIE said the success of the proposal was dependent on being able to grow the insurance market to meet the increase in demand.

MBIE said the current voluntary Chartered Professional Engineers (CPEng) scheme did not ‘‘serve its purpose’’ and many building consent authorities did not consider it a reliable mark of competence.

The reform would establish a voluntary certification overseen by the Ministry for Building and Construction and able to impose stronger sanctions on engineers acting unethically or doing substandard work. — RNZ

Susan FreemanGreene, chief executive of industry body Engineering New Zealand, said the problem stemmed from a lack of mandatory regulation of engineers carrying out complex safetycritical work. — RNZ