Accountability in building and construction
What’s happening?
The Building Act will be amended so that it’s clearer to builders, designers, building consent authorities and consumers who’s accountable for what.
New measures will also be introduced to make it easier for homeowners to hold builders to account.
The amendments to the Act will make it clear that:
- designers are accountable for ensuring that their plans, specifications and advice will meet the requirements of the Building Code
- builders are accountable for building to any approved plans and specifications, or if there are no approved plans or specifications then they are accountable for meeting the requirements of the Building Code
- owners of building work are accountable for getting any necessary approvals. If they change the plans or specifications, or do the building work themselves, then they are accountable for meeting the requirements of the Building Code.
- building consent authorities are accountable for checking that others are doing their part - including checking plans and specifications for Building Code compliance, checking at any prescribed inspection points that work is done in accordance with the plans and specifications, approving any critical variations and certifying that the work has been completed in accordance with the consent.
Why are these changes necessary?
The Building Act review found that the system is out of balance, with an unduly heavy reliance on building consent authorities to identify and correct inadequacies in building design and construction.
Building consent authorities are inclined to err on the side of caution, partly in response to the weathertightness crisis, and this has led to a level of checking and inspection that may be higher than necessary for low-risk work. This can cause delays and extra compliance costs.
The weathertightness crisis has also shown that it can be difficult for homeowners to hold those responsible for problems to account.
Can I have a say?
Yes, the proposed amendments to the Building Act will be considered by a parliamentary select committee which will call for submissions.
What about legal liability?
The Government has asked the Law Commission to review whether there is a need for change to the joint and several legal liability framework as it applies in the building and construction sector. Additional information about the review is on the Law Commission website
.
‘Joint and several’ means that liability for any defective building work is jointly shared between multiple parties, and the full cost of fixing the problem must be met by the parties.
Under proportionate liability parties are required to contribute a set amount that reflects how much they contributed to the loss or damage.
Further information
Cabinet paper: Building Act Review: Review of Joint and Several Liability [PDF 89 KB, 17 pages]
Cabinet minute: Building Act Review: Review of Joint and Several Liability [PDF 155 KB, 2 pages]
Review of the Application of Joint and Several Liability, by Buddle Findlay / Sapere [PDF 863 KB, 144 pages]
Cabinet paper: Building Act Review: Regulation of guarantee products and services [PDF 48 KB, 9 pages]
Cabinet minute: Building Act Review: Regulation of guarantee products and services [PDF 155 KB, 2 pages]
Regulatory Impact Statement: Building Act Review: Regulation of guarantee products and services
Read more in Paper 1: Overview of reform proposals [PDF 128 KB, 21 pages]
1PricewaterhouseCoopers report to Department of Building and Housing, Weathertightness - Estimating the cost July 2009, (p.62), data collected from councils.