Guidance on outstanding building consents
In the interests of ensuring that buildings are built at least to the performance levels of the Building Code, the Department of Building and Housing is keen, where possible, for all buildings to obtain a code compliance certificate (CCC).
Once consented building work is complete, the building owner is required under section 92 of the Building Act 2004 to apply for a CCC. Building consents are considered outstanding if the consented building work has started but has not been completed and a CCC has, therefore, not been issued. Contrary to common belief, the building consent does not lapse after two years, nor is there a legal obligation for owners to complete the building work.
Some building projects do not receive a CCC. This can be because the work is incomplete or non-compliant or, most commonly, because the building owner is simply unaware of the requirement to apply for a CCC. Failure to obtain a CCC may disadvantage the building owner when trying to sell a building.
The Department considers that all building owners who hold a building consent should apply for, and have the opportunity to obtain, a CCC. Accordingly, the Department encourages building consent authorities to have systems and processes in place to actively follow up on building consents where the owner has not applied for a CCC. Such systems and processes should distinguish between:
- building consents granted before 31 March 2005 under the Building Act 1991
- building consents granted since 31 March 2005 under the Building Act 2004.
The Act provides for consents granted before 31 March 2005 to be treated differently to those granted on or after 31 March 2005.
Consents granted under the Building Act 1991
Under the Building Act 1991, assessment of building work for CCC purposes is based on compliance with Building Code requirements at the time the consent was granted.
Unlike the Building Act 2004, the Building Act 1991 does not require a building consent authority to consider whether to issue a CCC after a certain time from the granting of the consent. This means that if an owner does not make an application for a CCC, the building consent is likely to remain outstanding indefinitely.
Suggested follow-up action
The Department encourages building consent authorities to advise the building owner by letter of the benefits of obtaining a CCC and the current obligation to apply for a CCC once building work is completed.Such a letter might also:
- seek the status of the building work (complete, or time until completion)
- advise that the building consent authority has the right to inspect building work under section 90 of the Building Act 2004
- provide a reasonable timeframe for the building owner to respond to the letter.
If the building owner does not reply within the given period, the building consent authority could arrange to inspect the building work to establish its status, and to seek contact with the owner while on site.
A follow-up letter could advise of any action it will take as a result of the inspection, such as issuing a notice to fix, where there is a breach of the Building Act or Building Regulations (including the Building Code).
A building owner may choose to leave building work unfinished provided that the completed work complies with the Building Act and the Building Code. However, the approach outlined would at least give the building consent authority a record of the status of consented building work and the actions they have taken to date.
Consents granted under the Building Act 2004
Assessment of building work for CCC purposes under the Building Act 2004 is based on compliance with the building consent, which should illustrate Building Code compliance. If the building consent authority is satisfied on reasonable grounds that the building work complies with the consent and all required fees have been paid, there should be no reason for the building consent authority to refuse to issue a CCC.
If a CCC application has not been made within two years of the building consent having been granted, the Building Act 2004 requires the building consent authority to make a decision whether to issue a CCC as if the owner had applied. This will usually require an inspection. The two-year period can be extended by agreement between the building owner and building consent authority.
Once the application is made, the building consent authority is required to assess the building work for compliance with the approved building consent and make a decision within 20 working days.
The two-year (or longer as agreed) period enables an owner to be reminded of the need to obtain a CCC and, where appropriate, for one to be issued.
Suggested follow-up action
Building consent authorities should have follow-up systems and processes for these outstanding consents that revolve around the two-year period. For example:
1. Two months before the period ends, the building owner could be contacted (letter or visit) to determine whether the work has been completed and whether the owner intends to apply for a CCC before the period ends.
The building owner could be advised that:
- the two-year period ends in two months
- the building consent authority will make a decision whether to issue a CCC within 20 working days of the expiry date
- the two-year period can be extended by agreement between both parties.
2. If the period ends with the owner's intentions unclear, contact should be made with the owner and the building work inspected within 20 working days, with one of the following decisions made regarding the CCC:
- issue a CCC if the completed building work complies with the building consent
- request further information about the building work during the 20-day period (eg, if the work could not be sufficiently inspected). The 20-day period is suspended until the information has been received
- agree with the owner to extend the two-year period
- refuse to issue a CCC if the work does not comply with the consent, or if any required energy work certificates have not been provided, or if any required development contributions have not been paid.
3. If a CCC cannot be issued due to incomplete work at the end of the two-year period (or longer as agreed), a building consent authority should also consider whether there are grounds for issuing a notice to fix.
A notice to fix would require a building owner to rectify within a reasonable timeframe any building work that does not comply with the Building Act or Building Code. This approach may also encourage a building owner to complete any outstanding building work and obtain a CCC. However, a notice to fix cannot require an owner to complete an unfinished building project solely on the grounds that the work is incomplete after the two-year period.
If the owner has no intention of completing the full scope of the consented building work, but the building work completed to date complies with the relevant parts of the building consent, the building consent authority could invite the owner to apply for an amendment to the building consent to reduce the scope of the work so it can meet CCC requirements.
Further information about CCCs is available at http://www.dbh.govt.nz/bofficials-code-compliance-cert or by emailing info@dbh.govt.nz