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Annual Report 2007/08

Chief Executive's overview

Part 1:

Part 2: Performance information

Part 3: Residential Tenancies Trust account

Part 4: Additional information

alternative format

Download the Annual Report 2007/08 [PDF 891 KB, 134 pages]

Building regulation and control

This output class involves delivering a regulatory regime that ensures buildings are built properly first time and meet the needs of New Zealanders. It includes specifying the regulatory environment, setting standards for buildings and building sector capability, and providing advice and guidance about the regulations and standards.

Output: Set the Standards for Building: Maintaining and reviewing existing Building Code and Compliance Documents; issuing warnings and bans as required.

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
New measure for 2007/08	Undertake five programmes of work to develop Building Code Compliance Documents or guidance documents	Measure achieved	Achieved Compliance Document or guidance documents covering simple housing, solar water heaters, earth buildings, building structure, emergency lighting, weathertightness and accessible car parking spaces were developed or updated.
New measure for 2007/08	Implementation of priority energy efficiency projects in accordance with agreed timelines	Measure met	Achieved The new solar water heating Acceptable Solution and changes to the Building Code to improve the efficiency of household insulation, heating, ventilation and air conditioning (HVAC) and domestic hot water systems were implemented.
	Quality
New measure for 2007/08	Programmes undertaken in accordance with the requirements of the Building Act 2004 and the Department's quality standards for policy advice	Measure met	Achieved All programmes were undertaken in accordance with the requirements of the Building Act 2004 and the Department's quality standards for policy advice.

Output: Implement the review of the Building Code

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
New measure for 2007/08	Implement the findings of the review of the Building Code, as agreed with the Minister	Measure achieved	Achieved On 23 June 2008, Cabinet agreed the basis on which changes resulting from the review of the Building Code should be prioritised. Phase one, which will be reflected in the 2008/09 work programme, comprises a framework for fire safety design, protection against noise, and carbon emissions as they relate to energy efficiency along with comprehensive sector education.
	Quality
New measure for 2007/08	Policy development is undertaken in accordance with the Department's quality standards for policy advice	Measure achieved	Achieved All policy development was undertaken in accordance with the Department's quality standards for policy advice.

Output: Sector Advice and Guidance: Provide information, advice and guidance to the building sector on the Building Act 2004.

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
Measure achieved	Information on CodeMark scheme for product certification is available and awareness campaign conducted	Measure achieved	Partly achieved Information on the CodeMark scheme for product certification is available. The awareness campaign will be conducted when the enabling regulations are promulgated.
	Quality
Measure revised for 2007/08	Information provided on time and developed in accordance with the Department's guidelines on professional communication	Measure achieved	Achieved Information was provided on time and developed in accordance with the Department's guidelines on professional communication.

Output: Building Sector Education

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
New measure for 2007/08	Develop a strategy by 30 June 2008 to enhance building officials' competency	Measure achieved	Not achieved The local government sector is taking the lead on this work. The Department has provided financial support to the local government sector to develop the first of two National Qualifications for Building Officials. The Department is also supporting the development of the next set of (more advanced) qualifications by being part of the advisory group established to oversee the development of the qualification, which is expected to be completed by September 2008.
	Quality
New measure for 2007/08	Evaluate success of strategy	Measure achieved	Not achieved This work will be undertaken once a strategy is in place.

Output: Public Information and Education

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
New measure for 2007/08	Continue to develop and implement the strategy to enhance consumer awareness and influence behaviour toward better-informed decision-making when purchasing homes and other buildings	Measure achieved	Achieved The Department continues to assist in the maintenance and upgrading of information on the ConsumerBuild site, which aims to enhance consumer awareness and influence behaviour toward better-informed decision-making when purchasing homes and other buildings.
New measure for 2007/08	Campaign to make dam owners aware of the Dam Safety Scheme by 30 June 2008	Measure achieved	Not achieved This work will be undertaken once the dam safety regulations are promulgated in early July.
	Quality
Guidelines met	All communications developed in accordance with our guidelines on professional communication	Guidelines met	Achieved Communications have been developed in accordance with our guidelines.

Output: Building Regulation Advice and Guidance: Provide advice and guidance information to the building sector and consumers.

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
12¹⁷	Guidance material releases	20	Achieved Guidance released, included: ‘Your Guide to Smarter Insulation', released in October 2007 ‘External moisture - a guide to weathertightness remediation', launched in December 2008 Variations to Building Consents, released in January 2008 24 Building Controls Updates issued Six BCA Update guidance publications issued.
8¹⁸	Codewords issues	10	Not achieved The timing of Codewords releases was varied to align with policy decisions and ensure timely communication of issues of significance to the sector. As a result, 8 issues were produced.
14,145	Forecast of queries answered by call centre (demand-driven)	12,000	Not achieved 11,606 queries were answered by the services centre.
	Quality
Guidelines met	All communications developed in accordance with our guidelines on professional communication	Guidelines met	Achieved All communications that were developed met our guidelines on professional communication.
63%¹⁹	Percentage of queries resolved by call centre (not escalated)	70%	Not achieved 47% of queries were resolved by the services centre. This measure was below target due to the receipt of more complex calls than anticipated. These calls required expert input and were forwarded to the appropriate business unit for response.

Output: Operate Regulatory Schemes: Administer product certification scheme, building consent authority accreditation and registration scheme, and dam safety scheme.

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
New measure for 2007/08	Product certification: Business process and systems operating by 31 March 2008	Measure achieved	Not achieved The Regulatory policy required to give effect to the Product Certification Scheme has been approved. Drafting is in progress with the aim of promulgating the Regulations by mid-August 2008. Processes and systems have been documented in a product certification operations manual.
New measure for 2007/08	Reporting and monitoring framework in place by 31 March 2008	Measure achieved	Achieved The reporting and monitoring framework was documented in a product certification operations manual by 31 March 2008.
New measure for 2007/08	Monitoring of Product Certification Accreditation Body in place by 31 March 2008	Measure achieved	Achieved JAS-ANZ was appointed as the product certification accreditation body and the contractual reporting requirements were agreed by 31 March 2008.
New measure for 2007/08	Building consent authority accreditation and registration: Develop and operate Building Consent Authority Accreditation and Registration Scheme	Measure achieved	Achieved The accreditation scheme was operational from 1 February 2007. The registration scheme was operational from 1 November 2007.
New measure for 2007/08	Building consent authority registration applications received by 15 November processed by 30 November	Measure achieved	Achieved The timeframe for councils to be registered as a building consent authority is now 31 March 2009. All BCA registration applications have been processed by the Department within two days of accreditation being achieved.
	Quality
New measure for 2007/08	Measures for product certification scheme to be developed on establishment of finalised scheme	Requirements met	Not achieved Establishment of the scheme was delayed due to the trans-Tasman negotiations taking longer than expected and the need to amend the Building Act 2004 to address the fees issue.
New measure for 2007/08	Building consent authority registration applications processed by 30 November 2007, for applications received by 15 November 2007 and assessed by 31 October 2007	Measure achieved	Achieved All BCA registration applications were processed by the Department within two days of accreditation being achieved.
New measure for 2007/08	All operational policy development meets our quality standards for policy advice	Quality standards met	Achieved All operational policy met our quality standards for policy advice.

Output: Monitor Building Consent Authorities: Ensure adherence to standards in the building sector.

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
6²⁰	Undertake and complete technical reviews of territorial authorities	5	Not achieved The following technical reviews were undertaken and completed. Follow-up Technical Review of Manukau City Council (Nov 2007) Follow-up Technical Review of Selwyn District Council (June 2008) Follow-up Technical Review of Queenstown Lakes District Council (January 2008) Technical Review of Far North District Council (May 2008) The fifth review was deferred until the 1st week of July at the request of the Thames Coromandel District Council who were focusing on their accreditation preparations during June 2008.
New measure for 2007/08	Monitor building consent accreditation body, with assessments completed by 30 November 2007	Measure achieved	Achieved Ongoing monitoring of the building consent accreditation body has been undertaken to reflect that the timeframe for councils to be registered as a building consent authority has been extended to 31 March 2009.
	Quality
Guidelines met	Technical reviews completed in accordance with the Department's Technical Review Guidelines	Guidelines met	Achieved Technical reviews were conducted in accordance with the Department's Technical Review Guidelines.
New measure for 2007/08	Performance of the accreditation body measured against appointment agreement	Agreement met	Achieved Regular monitoring of, and feedback on, performance against appointment agreement is being undertaken, and support was provided to International Accreditation New Zealand (the accreditation body) as required.

Output: Resolve Disputes: Investigate and resolve complaints and disputes about territorial authorities and issue determinations

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
Measure achieved	Complaints and disputes received and managed	Demand-driven	Achieved Complaints received under section 200 of the Building Act have been investigated and managed.
135	Determinations issued (demand-driven)	160	Not achieved A total of 127 determinations were issued, including some commenced in the previous year. This is a demand-driven deliverable.
	Quality
Less than 1%	Percentage of determinations appealed	Less than 3%	Achieved Two determinations (less than 2%) have been appealed this year. One appeal was unsuccessful and the other is still in progress.
	Timeliness
76%	Percentage of determinations completed within the statutory timeframe (60 days).	90%	Not achieved 86.4% of determinations were completed within the statutory timeframe, an improvement of over 10% on the previous year. The average number of days to complete a determination was 45. Further process refinements are required to ensure that even the most complex determinations can be completed within the 60 days allowed.

Output: Building and Construction Monitoring, Research and Evaluation: Undertake regulator and industry performance monitoring and reporting and commission building-related research.

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
Measure met	Four industry advisory panels operating	Ongoing	Achieved Four industry advisory panels are operating. Three of the four panels met twice during the year and the other once.
New measure for 2007/08	Programmes of research undertaken to support the setting of standards	Measure achieved	Achieved The Department continues to commission and monitor research projects relating to the development of the Building Code and Compliance Documents. Examples include research into timber treatment, timber decay, building envelope performance, reinforcing steel, sound transmission in buildings, building energy end-use, and fire risk assessment.
New measure for 2007/08	Initiate a strategic research framework and programme of projects	Measure achieved	Not achieved Recruitment is under way for staff to undertake this work.
	Quality
Terms of reference met	Industry advisory panels operate within their agreed terms of reference	Terms of reference met	Achieved Advisory panels operated within their agreed terms of reference.
New measure for 2007/08	Research projects completed in accordance with the terms of reference	Terms of reference met	Achieved All research completed complied with the terms of reference.

Commentary on performance

During the year the statutory deadline for completion of phase one of the building consent authority accreditation and registration scheme was extended from 30 November 2007 to 30 June 2008 and then on to 31 March 2009 to allow a small number of remaining councils greater time to undertake the work required for them to obtain accreditation or to transfer their building consent authority functions. The extended deadline has had a flow-on effect on the timing of some of the Department's related deliverables.

Financial Performance

2007 Actual $000		2008 Actual $000	2008 Main Estimates $000	2008 Supplementary Estimates $000
1,200	Revenue - Crown	372	-	840
63	Revenue - Departmental	80	79	78
16,943	Revenue - Other	17,228	16,150	15,990
18,206	Total Revenue	17,680	16,229	16,908
11,851	Total Expenses	12,706	12,839	14,428
6,355	Net surplus/(deficit)	4,974	3,390	2,480

17 The target was revised in 2007/08. The target for 2006/07 was 15.

18 The target was revised in 2007/08. The target for 2006/07 was 8.

19 The target was revised in 2007/08. The target for 2006/07 was 60%.

20 The target was revised in 2007/08. The target for 2006/07 was 6.