National Multiple-Use Approvals Update: Issue 2 - November 2009
Welcome to the second issue of ‘National Multiple-Use Approvals Update’. This newsletter outlines:
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Recap on Issue 1
Last month the Department issued its first newsletter on National Multiple-Use Approvals, outlining what these are, what types of buildings will be eligible, who can apply, and the processing timeframe.
The National Multiple-Use Approvals service is for volume builders, who intend to construct particular designs several times. Franchisers of stand-alone garages, group home builders, and retirement village franchisers have already indicated strong interest in the proposed service. The National Multiple-Use Approvals (NMUA) service will start on 1 February 2010.
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What is the purpose of the new scheme?
The NMUA service needs to deliver certainty of consenting by Building Consent Authorities (BCAs), faster processing times at the local level, reduced duplication for volume builders, and lower costs.
The Department will be regularly evaluating the performance of the NMUA scheme to ensure that streamlined services are occurring in the first instance, that customer satisfaction is monitored, and that continuous improvement occurs. The NMUA scheme is ultimately intended to reduce consenting times and costs, and these outcomes will be tracked and measured over time. We will be seeking user feedback as the new service matures, to monitor these outcomes.
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What are the benefits of participating?
The key benefits for volume builders participating in the NMUA scheme include:
- significant cost savings (dependent on the number of buildings replicated)
- quicker turn-around times for the local BCA consenting part of the process
- greater certainty of BCA consenting
- ability for builders to pass cost savings on to their customers, potentially giving them a market edge and especially in difficult economic times.
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Who will be eligible to apply for a NMUA?
The Department encourages NMUA applications from volume builders, so that service resources are directed to where they will bring the most benefit.
Volume builders are defined as:
- group home builders
- garage and shed franchisers
- suppliers of kitset buildings
- retirement village builders where such builders are involved in constructing their standard designs several times
- those who have the ability to replicate a building design more than 10 times in a two-year period.
There will be no ‘geographic boundary’ requirements or limitations on a NMUA. In other words, a design with a National Multiple-Use Approval can be built several times in one district, or nationwide.
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How much will I be charged for a NMUA application?
Overall, the Department estimates the cost of a NMUA for a simple house of one or two storeys will be in the order of $5,500 to $9,000 (including GST). The Department is committed to keeping fees to a minimum, in order to make the NMUA service attractive and viable for volume builders.
Fees for processing NMUA assessments and approvals will be charged on an hourly basis, as this will most accurately reflect the actual costs to the Department. As a result, it is intended that the fees incurred by customers will be both transparent and fair, with no cross-subsidisation between applicants occurring.
Some designs will require specialist input, in addition to a regular technical assessment for Code compliance. The use of specialists will depend on the complexity of submitted designs, and may (for example) be necessary in areas such as fire protection and accessibility, if these are relevant considerations. It’s anticipated that specialist input won’t be required for most garages and house designs, for which a National Multiple-Use Approval is sought.
The fee structure will be as follows (including GST):
- $96 per hour for Account Management services
- $147 per hour for the Assessor/s’ time (including peer review for quality assurance)
- $225 per hour for any specialists’ costs.
Applicants will be asked to provide an application pre-payment of $2,000 (including GST) per design, which will include a non-refundable fee of $500 (including GST). This deposit will help to cover initial processing and assessment costs, and will be deducted from the final invoice amount once the assessment process has been completed.
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How long is the Department able to take in issuing a NMUA?
When an application is received, the Account Manager will check it for eligibility and completeness and, if necessary, will liaise with the customer until their application is completed and ready to be ‘accepted’ for assessment.
Following acceptance of your application, the Department will then have 40 working days to assess each design for Building Code compliance.
When the NMUA certificate has been issued (ie, a design and/or any planned customisation of that design have been approved), the builder will then apply to the local Building Consent Authority (BCA) for a building consent. The BCA will have 10 working days to issue the building consent, and this will involve checking the site conditions, foundations and utilities (such as water services), confirming that the proposed design meets the conditions of the National Multiple-Use Approval, and checking any planning requirements.
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How much variation is allowed in each design?
When making an application it will be important to include all of the intended design variations at the outset. The application should therefore include all of the Code-compliant changes and modifications the builder is seeking to their standard design. This should help provide the flexibility to meet your business needs.
The Department will consider each of the variations at the same time as the initial design, and as part of the overall approval process for that design.
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Are you interested?
It’s important to register your interest and ensure that you receive the appropriate information at the right time. Your input will also help shape the scheme and improve service delivery.
You can do this either by:
If you are a member of the Registered Master Builders’ Federation or the Certified Builders’ Association of New Zealand, you can also contact your organisation (which will channel comments to the Department).
For more information, visit www.dbh.govt.nz or email nmua@dbh.govt.nz
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