New licensing system for building sector
Building Issues Minister Clayton Cosgrove has announced a scheme to introduce the licensing of design and building practitioners. The announcement follows extensive consultation with the building sector and stakeholders.
New Zealanders have a right to expect building work to be done properly the first time. This new licensing system will set benchmark national standards, which skilled building practitioners must meet to be able to undertake significant work,’ said Mr Cosgrove. ‘While most builders are reputable, there are some providing a poor service. This system will make it harder for these cowboys to operate, and will improve consumer confidence in the industry.
New licensing system for building sector ‘Builders without a licence will still be able to undertake a wide range of construction work, but significant work will have to be supervised by a licence-holder,’ said Mr Cosgrove. Mr Cosgrove said the Government’s commonsense approach protects the Kiwi DIY tradition. ‘Unlicensed people will still be able to carry out most of the work they now do around their home. For example, a farmer will still be able to build a hayshed, or a homeowner build a deck, a garden shed or fit a new kitchen.’
Mr Cosgrove said currently anyone can put on a tool belt and call themselves a builder, whether they are competent at their trade or not, so change is needed. This is an exciting time for the building industry. The licensed building practitioners regime will set a benchmark for quality and improve consumer confidence in the sector as a whole,’ said Mr Cosgrove.
How it will work
There will be 13 licence classes, which will be progressively introduced from November 2007 with full rollout of the scheme by 2011. There will be three Design and three Site licences that correspond to three categories of building where:
- category 1 is for straightforward houses
- category 2 is for moderately complex commercial or residential buildings
- category 3 is for large or publicly important buildings.
On all projects requiring licensed building practitioners there must be a Design Lead with the appropriate Design licence who would take responsibility for the final design and certify that the design meets the Building Code. On all projects requiring licensed building practitioners there must also be a Site Lead with the appropriate Site licence who would take responsibility for the final outcome of the construction work on the project and who would certify that the building work has been completed in accordance with the building consent. There will be seven Specialist and Trade licences (for all building categories):
- Concrete Structure
- Steel Structure
- Building Services
- Carpentry
- External Plaster
- Roofing
- Brick and Blocklaying.
The Specialist and Trade licenceholders will certify that the building work on the structure and envelope has been completed in accordance with the building consent. Licensing will only be mandatory for significant building projects, in other words:
- new buildings
- changing the use of a building
- extending or substantially altering an existing building that are intended for human occupation as a residence or workplace or for public use.
People without a licence will still be able to work on projects coming under the licensing regime, as long as they are supervised by a licensed building practitioner.
Timetable
It is estimated that a total of 28,000 people (about 19 percent of the current workforce) will need to be licensed to supervise or undertake the work on significant building projects. Therefore, it will be necessary to phase in the licence classes to enable the Department and the industry to balance the pressures of implementing the scheme while keeping the industry ticking.
From 1 November 2007, voluntary licensing for Design, Site and Carpentry licences will be available. These three are grouped together, as many people seeking a Site licence will also be seeking a Carpentry licence. There will be a package for people applying for more than one licence. From 2008, voluntary licensing for the licence classes relating to structure and envelope, ie, the remaining Specialist and Trade licences, will be phased in progressively.
From 30 November 2009 the role of Design Lead and Site Lead becomes mandatory. From 30 November 2011 all building projects requiring licensed building practitioners will require the appropriate Trade and Specialist licensed building practitioners. The Building Services licence remains voluntary.
What will it cost?
People seeking licences are likely to face an initial assessment cost of between $250 and $650, and the annual licence renewal will cost up to $200. Ultimately, licensing will result in significant benefits and savings for consumers. Up-skilling the workforce means it will be better able to respond to future changes in materials and products, thereby reducing the risk of future costly building failures. In time, this should lead to reduced construction costs, and fewer delays and disputes.
Licence standards and assessment criteria
The licence standards and assessment criteria will be established over the next year, and approved by the Building Practitioners Board. People will not necessarily need to have a formal qualification when they first apply to become licensed. There are many highly skilled and competent practitioners in the workforce who do not have any formal qualifications. They will be able to become licensed if they can demonstrate they meet the standards through their skills and experience.
Applications will be assessed on whether they meet the licence standards. Some applicants may need an in-depth assessment, such as a face-to-face interview or a visit to previous projects. The assessments will be done by people with industry experience. The licence standards for each licence class are under development with help from the industry. The details of the standards for each licence class will be available later in 2006 or early 2007.
Training
It is anticipated that licensing will encourage an increase, over time, in the numbers of people in the building industry undertaking and completing formal education and training. It is known that there has already been a substantial increase in participation in training for a number of key trades (eg, carpentry, roofing, external plastering). However, not all licence classes have recognised qualification pathways at present. Work is under way to enhance the training pathways for those wanting to qualify in the areas of work covered by the licence classes.
In the longer term, the aim is to have a relevant qualification linked to each licence class. This will encourage people joining the industry to undertake training that will not only increase their competence but also help their chances of becoming licensed.
Frequently asked questions
Why is the Government introducing licensing?
The new licensing regime is designed to help ensure buildings are built properly first time by setting highquality benchmark standards for the building industry. There are currently low levels of formal training in the building industry. One third of builders have a formal qualification and for many specialist trades the percentage is lower. At the same time there have been a lot of changes in the building industry, including:
- changing consumer preferences
- more complex residential buildings being built
- more activity by developers building to on-sell
- more fragmentation of building trades and use of semi-skilled labour
- rapid development of new technologies, materials and systems
- less coordination between design and construction.
These factors have contributed to significant building failures, notably leaky buildings. The licensing system aims to improve the quality of buildings and increase consumer protection by:
- setting national standards for people carrying out certain design and building work
- helping consumers identify licensed building practitioners
- ensuring design and building practitioners are accountable for their work.
What does the building industry think about licensing?
The industry has had a key role in developing the regime and is supportive of the approach being taken. Industry will continue to be involved as we work through the implementation process.
How does licensing help consumers?
Licensing sets benchmark standards. People who apply for a licence will have their name on a public register. Consumers will be able to check the register and use it to choose building and design practitioners who meet the national standards. Licensed building practitioners will be accountable for their work before the Building Practitioners Board.
Will people still be able to undertake do-it-yourself work?
Yes. Most of the work DIYers do today they will still be able to do under the new regime. The only construction that will need to be supervised and certified by a licensed building practitioner will be for:
- new buildings intended for human residence, work or public use
- change of use of buildings (for example, converting an office into an apartment)
- extensions and major alterations to existing buildings intended to be used as residences, workplaces or for public use.
What is the Building Practitioners Board?
The Building Practitioners Board is made up of building industry specialists with expertise in design, construction, inspection services, the law, dispute resolution, education and training. It will approve the rules for standards and assessment processes, hear appeals against licensing decisions and hear complaints against, and discipline, licensed building practitioners. The Board is appointed by the Governor-General on the recommendation of the Minister for Building Issues.
Further information
Visit the Department of Building and
Housing website: www.dbh.govt.nz